Question: help with 5,6,7 please thank you in advance margin for the current year. Break-Even Sales Under Present and Proposed Conditions Unit variable cost 90 Portmann
help with 5,6,7 please thank you in advance

margin for the current year. Break-Even Sales Under Present and Proposed Conditions Unit variable cost 90 Portmann Company, operating at full capacity, sold 1,000,000 unit Unit contribution margin 100 at a price of $190 per unit during the current year. Its income 3. Compute the break-even sales (units) for the current year. statement is as follows: 433,000 units Sales $190,000,000 4. Compute the break-even sales (units) under the proposed Cost of goods sold (98,000,000) Gross profit $92.000,000 program for the following year. Expenses 483,000| units Selling expenses $15,000,000 5. Determine the amount of sales (units) that would be necess Administrative expenses 20,300,000 Total expenses (35,300,000) under the proposed program to realize the $56,700,000 of Operating income $56,700,000 operating income that was earned in the current year. units The division of costs between variable and fixed is as follows: Variable Fixed 6. Determine the maximum operating income possible with the Cost of goods sold 70% 30% expanded plant. Selling expenses 75% 25% $ Administrative expenses 50% 50% 7. If the proposal is accepted and sales remain at the current I Management is considering a plant expansion program for the what will the operating income or loss be for the following year following year that will permit an increase of $11,400,000 in yearly $ Income sales. The expansion will increase fixed costs by $5,000,000 but 8. Based on the data given, would you recommend accepting will not affect the relationship between sales and variable costs. proposal? Required: a. In favor of the proposal because of the reduction in break-ev 1. Determine the total variable costs and the total fixed costs for th point. b. In favor of the proposal because of the possibility of increasi current year. income from operations. Total variable costs 90,000,000 c. In favor of the proposal because of the increase in break-eve Total fixed costs 43,300,000 point. d. Reject the proposal because if future sales remain at the cul 2. Determine (a) the unit variable cost and (b) the unit contribution level, the income from operations will increase margin for the current year. e. Reject the proposal because the sales necessary to maintai current income from operations would be below the current Unit variable cost 90 sales. Unit contribution margin 100 Choose the correct answer. 3. Compute the break-even sales (units) for the current year. 433,000 units
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