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Break$-$even sales under present and proposed conditions

Portmann Company, operating at full capacity, sold $1,000,000$ units at a price of $$188$ per unit during the current year. Its income statement is as follows:

Sales

Cost of goods sold

Gross profit

Expenses:

Selling expenses $$16,000,000$

Administrative expenses $,12,000,000$

Total expenses

Operating income

The division of costs between variable and fixed is as follows:

$\backslash$table$[[,$Variable,Fixed$],[$Cost of goods sold,$70\%,90\%$

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

Total variable costs $

Total fixed costs $

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

Unit variable cost $

Unit contribution margin $

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

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

$5.$ Determine the amount of sales $($units$)$ that would be necessary under the proposed program to realize current year.

units

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

$7.$ If the proposal is accepted and sales remain at the current level, what will the operating income or loss