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Break even sales under pressure and proposed conditions Battonkill Company, operating at full capacity, sold one hour and 137,300 units if the price of $108

Break even sales under pressure and proposed conditions
Battonkill Company, operating at full capacity, sold one hour and 137,300 units if the price of $108 per unit during the current year. It income statement for the current year is as follows: image text in transcribed
image text in transcribed
Break-Even Sales Under Present and Proposed Conditions Battonkill Company, operating at full capacity, sold 137,300 units at a price of $108 per unit during the current year. It income statement for the current year is as follows: Sales $14,828,400 Cost of goods sold 5,256,000 Gross proft $9,572,400 Expenses: Selling expenses Administrative expenses $2,628,000 1,584,000 Total expenses 4,212,000 Income from operations $5,350,400 The division of costs between fixed and variable is as follows: Fixed Variable Cost of goods sold 40% 60% Seng expenses 50% 50% Administrative expenses 70% 30% Management is considering a plant expansion program that will permit an increase of $1.295,000 in yearly sales. The expansion will increase fixed costs by $172,800, but will not affect the relationship between sales and variable costs. Required: 1. Determine for the current year the total foxed costs and the total variable costs. Total fixed costs Total variable costs

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