Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units...

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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 $190 per unit during the current year. Its income statement is as follows: Sales Cost of goods sold Gross profit $190,000,000 (102,000,000) $88,000,000 Expenses: Selling expenses $16,000,000 Administrative expenses 13,200,000 Total expenses Operating income (29,200,000) $58,800,000 The division of costs between variable and fixed is as follows: Cost of goods sold Selling expenses Variable Fixed 70% 30% 75% 25% 50% 50% Administrative expenses Management is considering a plant expansion program for the following year that will permit an increase of $11,400,000 in yearly sales. The expansion will increas costs by $4,000,000 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 Total fixed costs $ 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $190 per unit during the current year. Its income statement is as follows: Sales Cost of goods sold Gross profit $190,000,000 (102,000,000) $88,000,000 Expenses: Selling expenses $16,000,000 Administrative expenses 13,200,000 Total expenses Operating income (29,200,000) $58,800,000 The division of costs between variable and fixed is as follows: Cost of goods sold Selling expenses Variable Fixed 70% 30% 75% 25% 50% 50% Administrative expenses Management is considering a plant expansion program for the following year that will permit an increase of $11,400,000 in yearly sales. The expansion will increas costs by $4,000,000 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 Total fixed costs $ 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.