Break Even Sales Under Present and Proposed Conditions Darby compary, operating at full capacity, sold 176.600 NS a price of 3132 per unit during the current year. Its income statement is as follows Sales $23,311,200 Cost of goods sold 8,272.000 Grouprot $15.039,200 Expenses Selling expenses $4,136,000 Administrative expenses 2.461,000 Total expenses 6,600,000 income from operations 501,439,200 The division of costs between vorable and thend is as follows: Variable Fixed Cost of goods sold 60 404 Selling expenses 50% Administrative 30% 2016 expenses Management is considering a plant expansion program for the following year that will pertine of $9,112,000 in yearly. The expangon wit increase fixed costs by $281.600, but will not affect relationship between sales and variable costs Required: 1. Determine the total variable costs and the total fixed costs for the current year Total variable costs Required: 1. Determine the total variable costs and the total fixed costs for the current year Total variable costs Total fixed costs 2. Determine (a) the unit variable cost and (b) the unit contnbution margin for the current year Unit variable cost Unit contribution margin 3. Compute the break even sales (unit) for the current year units 4. Compute the break even sales (units) under the proposed ogram for the following year. un S. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $8,439,200 of income from operations that was corned in the current year. units 6. Determine the medium income from operations possible with the expanded plant 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 in favor of the proposal because of the increase in break even point t the necesin at the cut the force