Based on the following information attached below should the proposal be accepted? and why or why not

Chapter 20, End Of Chapter, Problems: Series A, Exercise FRED-2A Page 1033 I\" F3 \" Part 1 Part 2a Part 2b Part 3 Part 4 Part 5 Part B Part 1' 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 .............................. 5 133,000,000 Cost of goods sold ................ {100,000,000} Gross prot ....................... 5 33,000,000 Expenses Selling expenses ............... $16,000,000 Administrative expenses ....... 12,000,000 Total expenses ............. {23,000,000} Operating income ................. $ 60,000,000 The division of costs between variable and fixed is as follows: Cost of goods sold Selling expenses Administrative expenses Management is considering a plant expansion program for the following year that will permit an increase of $11,280,000 in yearly sales. The expansion will increase fixed costs by $5,000,000 but will not affect the relationship between sales and variable costs. 8. Based on the data given, would you recommend accepting the proposal? Explain