Required: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs $ 88,000,001} J Total xed costs $ 4o,4oo,ooo v4" 2. Determine [a] the unit variable cost and Cb] the unit contribution margin for the current year. ) Unit variable cost $- J Unit contribution margin $- Hf 3. Compute the break-even sales (units) for the current year. 4. Compute the breakeven sales (units) under the proposed program for the following year. 5. Determine the amount of sales [unitsjl that would be necessary under the proposed program to realize the 559,600,000 of operating income that was earned in the current year. 6. Determine the maximum operating income possible with the expanded plant. 5:] T. If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year'? BreakEven Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $180 per unit during the current year. Its income statement is as follows: Sales $183,000,000 Cost of goods sold {99,000,000} Gross prot $89,000,000 Expenses: Selling expenses $16,000,000 Administrative expenses 13,400,000 Total expenses {29,400,000) Operating income $59,600,000 l The division of costs between '-.-'a" al: 5- and fix-ac is as follows: Variable Fixed Cost of goods sold T09\":- 30% Selling expenses 1'5\"}:- 25% Administrative 50% 50% 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 xed costs by $4,500,000 but will not affectthe relationship between sales and variable costs. Required