H B 4 B CE C C C Al A( Si * C S .I GWEN A + H + X C v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false u Problem Set: Module 4 7 eBook Show Me How ? 1. BE.06.02.ALGO Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $186 per unit during the current year. Its income statement is as follows: Sales $186,000,000 2. BE.06.03.ALGO Cost of goods sold (100,000,000) 3. EX.06.01 Gross profit $86,000,000 Expenses: 4. EX.04.06 Selling expenses $14,000,000 5. PR.06.02A.ALGO Administrative expenses 11,000,000 Total expenses 25,000,000) 6. TMM.04.06 Operating income $61,000,000 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 70% 30% hulu Selling expenses 75% 25% Administrative 50% 50% expenses Management is considering a plant expansion program for the following year that will permit an increase of $9,300,000 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. 3 Total variable costs Total fixed costs Check My Work Progress: 5/6 items Previous Next > 4 08 Assignment Score: 73.03% All work saved. Email Instructor Save and Exit Submit Assignment for Grading4 [19 4X]:C(|':.J C .Hil4|C( 2.:C(IGMIQMl'Eil'lFS-lluallllaw \"Nil-\"'NIIHIISFE + _ .9 x' (- 9 C i v2.cengagenow.oomiilrnrtakeAssignmentftakeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=lalse Q {3 'L'] Problem Set: Module 4 ' 1.: I imi- 2. Determine [a] the unit variable cost and (D) the unit contribution margin for the current year. Unit variable cost Unit contribution margin D 3. Compute the breakieven sales (units) For the current year. 4. Compute the break-even sales (units) under the proposed program for the following year. 5. Determine the amount of sales (units) that would be necessary under the proposed program ho realize the 561,000,000 of operating income that was earned in the current year. 6. Determine the maximum operating income possible with the expanded plant. 7. [l the proposal is acoepted and sales remain at the current level, what will the operating income or loss be forthe following year? 8. Based on the data given, would you recommend accepting the proposal? a. In favor of the proposal because of the reduction in break-even point. b. In favor of the proposal because of the possibility of increasing income from operations. c. In favor of the proposal because of the increase in break-even point. cl. Reject the proposal because if future sales remain at the current level, the income from operations will increase. e. Reject the proposal because the sala necessary to maintain the current income from operations would be below the current year sales. Choose the correct answer. laJ Progress: 516 items Assignment Some: 73.03% All work sued