break even sales under present and proposed conditions

Student Lo and 11-2 O Break-Even Sales Under Present and Proposed Conditions Kearney Company, operating t ful capacity, old 40000 nts tpric of 246.6 r uit duning 20%5. its Income satement 46.60 per unit during 20Y5. Its income statement for 20YS is as follows $98,640,000 Cost of goods sold Gross profit Expenses: $54,140,000 Selling expenses Administrative expenses $8,000,000 3,000,000 11,000,000 43,140,000 Income from operations The division of costs between fixed and variable is as follows: Fixed Varlable Cost of goods sold 25% Management is considering a plant expansion program that t will permit an increase of $8,631,000 (35,000 units at $246.60 per unit) in yearly sales. The expansion wil i costs by $3,600,000, but will not affect the relationship between sales and variable costs. 1. Determine for 20YS the total fixed costs and the total variable costs. 880000 2068000 Total variable costs