Please help Selling expensesAdministrative expenses75%50%25%50%Management is considering a plant expansion program for the following year thatwill permit an increase of $11,280,000 in yearly sales. The expansion will increasefixed costs by $4,500,000 but will not affect the relationship between sales andvariable 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 thecurrent year.Unit variable cost $Unit contribution margin $3. Compute the break-even sales (units) for the current year.units4. Compute the break-even sales (units) under the proposed program for thefollowing year.units.5. Determine the amount of sales (units) that would necessary under theproposed program to realize the $59,000,000 of operating income that was earnedin the current year.units6. Determine the maximum operating income possible with the expanded plant.$7. If the proposal is accepted and sales remain at the current level, what will theoperating income or loss be for the following year?$8. Based on the data given, would you recommend accepting the propa. 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 fromoperations.c. In favor of the proposal because of the increase in break-even point.d. Reject the proposal because if future sales remain at the current level, theincome from operations will increase.e. Reject the proposal because the sales necessary to maintain the current incomefrom operations would be below the current year sales.Choose the correct answer. Break-even sales under present and proposed conditionsPortmann 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:SalesCost of goods soldGross profitExpenses:Selling expenses.$14,000,000Administrative expenses 15,000,000Total expenses$188,000,000(100,000,000)$88,000,000(29,000,000)$59,000,000Operating incomeThe division of costs between variable and fixed is as follows:Variable70%75%50%Fixed30%25%50%Cost of goods soldSelling expensesAdministrative expensesManagement is considering a plant expansion program for the following year thatwill permit an increase of $11,280,000 in yearly sales. The expansion will increasefixed costs by $4,500,000 but will not affect the relationship between sales andvariable 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 thecurrent year.Unit variable cost $Unit contribution margin $[units3. Compute the break-even sales (units) for the current year.units4. Compute the break-even sales (units) under the proposed program for thefollowing year.5. Determine the amount of sales (units) that would be necessary under theproposed program to realize the $59,000,000 of operating income that was earnedin the current year.units6. Determine the maximum operating income possible with the expanded plant.$7. If the proposal is accepted and sales remain at the current level, what will theoperating income or loss be for the following year?

Fixed cost are those costs which remain constant on volume basis and decreases on per unit basis as…

50% 50% Administrative 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 fixed costs by $4,500,000 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. Unit variable cost $ Unit contribution margin $ 3. Compute the break-even sales (units) for the current year. units