10 Things Financi Active CengageNOWV2. eBook Show Me How Printer Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 121,500 units at a price of S117 per unit during the current year. Its Income statement for the current year is as follows: Sales $14,215,500 Cost of goods sold 7,020,000 Gross profit $7,195,500 Expenses: Selling expenses $3,510,000 Administrative expenses 3,510,000 Total expenses 7,020,000 Income from operations $175,500 The division of costs between fored and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 25 Administrative 50% 50% expenses Management is conudeng a plant expansion program that will permit an increase of $1.267.000 in early sales The expansion will increase feed costs by $128,700, but will not affect the relationship between sales and various 75% BE Target eBook Show Me How Print Item Management is considering a plant expansion program that will permit an increase of $1,287,000 in yearly. The expansion will increase foxed costs by $125,700, 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. Enter the final answers rounded to the nearest dollar Total variable costs Total fixed costs 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the final answers rounded to two decimal places Unit variable cost Unit contribution margin 3. Compute the break-even sales (units) for the current year. Enter the final answers founded to the nearest whole number units 4. Compute the break-even sales (units) under the proposed program for the big year Enter the final answers rounded to the nearest whole number units 5. Determine the amount of sales (units) that would be necessary under the proposed program to raise the $175.500 of income from operations that we are in the current year. Enter the final answers rounded to the nearest whole number units 6. Determine the maximum income from operations possible with the expanded plant Enter the final answer rounded to the nearest dla 7. If the proposals accepted and sales remain at the current level, what will the income or loss from operations be for the following year Enter the final awer rounded to the nearest do B. Bid on the data giver would you recommend hoping the proposal In favor of the proposal because of the reduction in break even point in favor of the proposal because of the Bonsibility of increasing income from operations, Check My Work Previous 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the final answers rounded tu two decimal places Unit variable cost Unit contribution margin 3. Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number units 4. Compute the break-even sales (units) under the proposed program for the following year. Enter the final answers rounded to the nearest whole number units S. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $175,500 of income from operations that was earned in the current year. Enter the final answers rounded to the nearest whole number units 6. Determine the maximum income from operations possible with the expanded plant. Enter the final answer rounded to the nearest dollar 7. If the proposals accepted and sales remain at the current level what will the income or loss from operations be for the following year? Enter the final answer rounded to the nearest dollar. I. Based on the data given, would you recommend accepting the proposal a. 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 from operations in favor of the proposal because of the increase in break-even point d. Reject the proposal because of future sales remain at the current level, the income from operations will increase . Reject the proposal because the sales necessary to maintain the current income from operations would be below the current years Choose the correct answer Previous Check My Work