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5) Determine the amount of sales (units) that would be necessary under the proposed program to realize the $173,550 of income from operations that was

5) Determine the amount of sales (units) that would be necessary under the proposed program to realize the $173,550 of income from operations that was earned in the current year. Also question 5,7, and 8
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BOOK Show Me How Determine the amount of sales (units) that would be necessary under Brus.Even Sales Present and Proposed Conditione Darby Company operating thall capacity, sold 120, 150 units at a price of $117 per unit during the current war. The income statement for the current years forowi Sales $14,057,550 Cost of goods sold 6.6M2,000 Gros pront 57,115,550 Expert Singegenses $3,471.000 Administrative essence 1,471,000 Total penses 6,942.000 Income from operations $17.550 The son of costs between Bed and variable is as follows: Variable Fixed Cost of goods sold 704 30 Selling expenses 25% Administrative 50% 505 Management considering a plant expansion program that will permt an ef $1,170,000 in yearly sales. The expansion will remove tive asts by 5117,000, but will not affect the reano temos and variable Required burre Total arable costs 9.148,150 Teleco 4.685,350 2. Determine (a) the cost and (b) the corn for the current years the final rounded to the Un varbos 76.56 Un oton margin 40.46 3. Compute the crit) for the current years the found the nearest wiele 115.8 4. Compute the break-even we under the program for the follow are there to store 118,765 vits Demet amount of units that we were not the owners that are in the current were reserwehr 6. Det the income from the enter the the row wide www w na wewe turn the wronted to the rest Bedsheet your nor of the reduction inwerferone by income Infover the propone de boniture est level with Berthecary to the current and be the one year Choose Module 4 Assignment eBook Show Me How Print Item 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 120,150 units at a price of $117 per unit during the current year. Its incor Sales $14,057,550 6,942,000 Cost of goods sold Gross profit $7,115,550 Expenses: Selling expenses $3,471,000 Administrative expenses 3,471,000 Total expenses 6,942,000 Income from operations $173,550 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative 50% 50% expenses Management is considering a plant expansion program that will permit an increase of $1,170,000 in yearly sales. The expa Required: 1. Determine the total variable costs and the total fixed costs for the current year, Enter the final answers rounded to the Total variable costs 9,198,150 Total fixed costs 4,685,850 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the final answers Unit variable cost 76.56 Unit contribution margin 40.44 3. Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole num! 115,872 units Check My Work MOTS-Wontable BSNHU dule 4 Assignment Operations Manag Microsoft eBook Show Me How Printem 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 76.56 40.44 Unit contribution margin 3. Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number. 115,872 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. 118,765 units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $173,550 of income from operations that was earned in units 6. Determine the maximum income from operations possible with the expanded plant. Enter the final answer rounded to the nearest dollar s 7. If the proposal is accepted and sales rimain at the current level, what will the income or less from operations be for the following year? Enter the final answer roun $ 8. 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, 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, the income from operations will increase. e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales Choose the correct

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