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 $188,000,000 cost of goods sold (99,000,000) gross profit $89,000,000 expenses: selling expenses $16,000,000 administrative expenses 13,400,000 total expenses (29,400,000) operating income $59,600,000 the division of costs between variable and fixed is as follows: variable fixed cost of goods sold 70% 30% selling expenses 75% 25% administrative expenses 50% 50% 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 $3,000,000 but will not affect the relationship between sales and variable costs.
A) Present conditions: $29,400,000; Proposed conditions: $32,400,000
B) Present conditions: $32,400,000; Proposed conditions: $29,400,000
C) Present conditions: $29,400,000; Proposed conditions: $35,280,000
D) Present conditions: $35,280,000; Proposed conditions: $29,400,000
