Reference no: EM133105446
Question - Break-Even Sales Under Present and Proposed Conditions - Portmann Company, operating at full capacity, sold 1,000,000 units at a price of 187 per unit during the current year. Its income statement is as follows:
Sales $187,000,000
Cost of goods sold (98,000,000)
Gross profit $89,000,000
Expenses:
Selling expenses $15,000,000
Administrative expenses 14,300,000
Total expenses (29,300,000)
Operating income $59,700,000
The division of cost between variable and fixed is as follows:
|
Variable
|
Fixed
|
Cost of goods sold
|
70%
|
30%
|
Selling expenses
|
75%
|
25%
|
Administrative expenses
|
50%
|
50%
|
Required - Determine the total variable costs and the total fixed costs for the current year.