Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $189 per unit during the current year. Its income statement is as follows:

Sales $189,000,000 Cost of goods sold (100,000,000) Gross profit $89,000,000 Expenses: Selling expenses $15,000,000 Administrative expenses 15,500,000 Total expenses (30,500,000) Operating income $58,500,000 The division of costs between variable and fixed is as follows:

Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program for the following year that will permit an increase of $11,340,000 in yearly sales. The expansion will increase fixed costs by $5,000,000 but will not affect the relationship between sales and variable costs.

Required:

1.Determine the total variable costs and the total fixed costs for the current year.

Total variable costs $89,000,000

Total fixed costs $41,500,000

2.Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.

Unit variable cost $89

Unit contribution margin $100

3.Compute the break-even sales (units) for the current year.

415,000 units

4.Compute the break-even sales (units) under the proposed program for the following year.

465,000 units

5.Determine the amount of sales (units) that would be necessary under the proposed program to realize the $58,500,000 of operating income that was earned in the current year.

1,050,000 units

6.Determine the maximum operating income possible with the expanded plant.

$

I can't figure out how to find the answer to #6. I have tried almost everything and I'm not understanding what I'm doing wrong. Please explain to me how to do it!