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Break-Even Sales Under Present and Proposed Conditions Boleyn Company, operating at full capacity, sold 120,000 units at a price of $140 per unit during 2014.
Break-Even Sales Under Present and Proposed Conditions Boleyn Company, operating at full capacity, sold 120,000 units at a price of $140 per unit during 2014. Its income statement for 2014 is as follows: 16,800,000 6,200,000 10,600,000 Expenses: 1,550,000 4,950,000 5,650,000 The division of costs between variable and fixed is as follows: Variable 60% 75% 60% Fixed 40% 25% 40% Cost of goods sold Selling expenses Administrative expenses Management is considering a plant expansion program that will permit an increase of $2,800,000 in yearly sales. The expansion will increase fixed costs by $1,250,000, but will not affect the relationship between sales and variable costs Required: 1. Determine the total fixed costs and the total variable costs for 2014 Total variable costs Total fixed costs
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