5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $49,500 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 proposal is accepted and sales remain at the current level, what will the income or loss from operation be for the following year? Enter the final answer rounded to the nearest dollar. 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 answer. 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 74,250 units at a price of $54 per unit during the current year. Its Income statement for the current year is as follows: Sales $4,009,500 1,980,000 Cost of goods sold Gross profit $2,029,500 Expenses: Selling expenses $990,000 990,000 Administrative expenses Total expenses 1,980,000 $49,500 Income from operations The division of costs between fixed and variable is as follows: Variable Fixed 70% 30% 75% 25% Cost of goods sold Selling expenses Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $324,000 in yearly sale The expansion will increase fixed costs by $32,400, but will not affect the relationship between sales and variable costs