Break Even Sales under present and Proposed Conditions Darby Company operating at all capacity, sold 99,700 units at a price of $123 per unt during the current year. Its income statement is as follows: Sales $12,263,100 Cost of goods sold 4,346,000 Gross pront $7.917.100 Expenses Sling expenses 52.171.000 Austrative per 1.312.000 Total penes 3,485.000 Income from perio 14,432.100 The sono con between Variable and fed followed Variable Ford Cost of goods sold Selling expenses Adriatie 30 70 Management sera planter og for the owing year that will perman 1.107.000 yearly the expansion will increased cost $147,600 but will not led the relationship between and wait 1. Determine the total variable costs and the total fixed costs for the current year Total variable costs Tot costs 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current ye. Unit variable cost Unit contribution margin 2. Compute the break even sales (units) for the current your units 1. Compute the break ever sales (units) under the proposed program for the following your units 3. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $4,412,100 or income from operations that was carried in the current year, units 6. Determine the marrom Adcore from operations poustible with the expanded plant. 7. If the posted and sales remain the current level, what will the income or loss from operations be for the following year? 11. Band on the data given, would you recommend accepting the proposal a. In favor of the proposal because of the reduction break even point In favor of the proposaltcine of the possibility of increasing income from operations in favor of the proposal because of the increase in break even point. dect the propos because future sales ret the current love the income from persons will increase ed the proposal because the sales necessary to maintain the current come from operations would be below the current year sales Choose the