Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 163,500 units at a price of $87 per unit dunng the current year. Its income statement is as fallows: The division of costs between variable and fixed is as follows: Required: 1. Determine the total variabie 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 urit contrit Unit varable cost Unit contribution morgin 3. Compute the break-even sales (units) for the cument yeac, xunits 4. Compute the break-even sales (units) under the proposed program for the following year, x units 6. Determine the maximum income from operations possible with the expanded plant. x 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? 2 8. Based on the doto given, would you recommend accepting the proposal? a. In favor of the proposal because of the reduction in break-even paint. b. In favor of the proposal because of the possibility of increasing income from operations. c. In favor of the propoeal because of the increase in break-even point. d. Reject the propossl becsuse if future sales remain at the current level, the income from operations will incresse. e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales. Choose the correct