7 Break Even Sales Under Present and Prout Condos Darby Company operating at a capacity, sold 104.200 unts a price et super here you the recents Sales $21.0.800 Cost of goods sold 7.740.000 Grosspot $14.086.500 Expenses Selling expenses $3,870,000 Administrative expenses 2.222.000 Total expenses 6.199,000 Income from operations 51,4,500 The division of costs between Variable and feed is as follows: Variable Forced Cost of goods sold 60 40 Selling expenses SON Son Administrative 3046 704 expenses Management is considering a plant expansion program for the following year that will permainase of $1.000.000 yearly sales the expansion will need cesty 3.00 relationship between sales and anable coste Required: I. Determine the total variable costs and the total food costs for the current year Total vantable costs Requiredi 1. Determine the total variable and the total cost for the current Tot aicos Totale costs 2. Determine (a) the urvt variable cost and (b) the unit contribution margin for the care o Unit variable cost Unit contribution margin 3. Compute the break even sales (units) for the current year units 4. Compute the break even sales (tr) under the proposed program for the following year. units 5. Determine the amount of sales (units) that would be necessary under the proposed program to the $7,996.80 of income from operations that was came in the curent units 6. Determine the maximum income from operations possible with the expanded plan 7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year 3. 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 Hatha bhion