{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T14:11:39-04:00", "answer_date": "2024-05-26 14:11:39", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1743917", "url": "\/study-help\/questions\/breakeven-sales-under-present-and-proposed-conditions-darby-company-operating-1743917", "question_creation_date_js": "2024-05-26T14:11:39-04:00", "question_creation_date": "May 26, 2024 02:11 PM", "meta_title": "[Solved] Break-Even Sales Under Present and Propos | SolutionInn", "meta_description": "Answer of - Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 172,900 units a | SolutionInn", "meta_keywords": "break-,sales,present,proposed,conditions,darby,company,operating,full,capacity,sold,172,900", "question_title_h1": " Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 172,900 units at a price of $51 per unit during", "question_title": " Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at", "question_title_for_js_snippet": "Break Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 172,900 units at a price of $51 per unit during the current year Its income statement is as follows Sales Cost of goods sold Gross profit Expenses $8,817,900 3,128,000 $5,689,900 Selling expenses $1,564,000 Administrative expenses 935,000 Total expenses 2,499,000 $3,190,900 Income from operations The division of costs between variable and fixed is as follows Variable Fixed Cost of goods sold 60 40 Selling expenses 50 50 Administrative expenses 30 70 Management is considering a plant expansion program for the following year that will permit an increase of $714,000 in yearly sales The expansion will increase fixed costs by $95,200, but will not affect the 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 Total fixed costs 2 Determine (a) the unit variable cost and (b) the unit contribution margin for the current year Unit variable cost Unit contribution margin 3 Compute the break even sales (units) for the current year units 4 Compute the break even sales (units) under the proposed program for the following year units 5 Determine the amount of sales (units) that would be necessary under the proposed program to realize the $3,190,900 of income from operations that was earned in the current year units", "question_description": "\"image\"image", "transcribed_text": "Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 172,900 units at a price of $51 per unit during the current year. Its income statement is as follows: Sales Cost of goods sold Gross profit Expenses: $8,817,900 3,128,000 $5,689,900 Selling expenses $1,564,000 Administrative expenses 935,000 Total expenses 2,499,000 $3,190,900 Income from operations The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 50% 50% Administrative expenses 30% 70% Management is considering a plant expansion program for the following year that will permit an increase of $714,000 in yearly sales. The expansion will increase fixed costs by $95,200, but will not affect the 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 Total fixed costs 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost Unit contribution margin 3. Compute the break-even sales (units) for the current year. units 4. Compute the break-even sales (units) under the proposed program for the following year. units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $3,190,900 of income from operations that was earned in the current year. units", "related_book": { "title": "Survey of Accounting", "isbn": "978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856", "edition": "3rd Edition", "authors": "Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/118.jpg", "uri": "\/textbooks\/survey-of-accounting-3rd-edition-118", "see_more_uri": "" }, "free_related_book": { "isbn": "1911020412", "uri": "\/textbooks\/salary-versus-dividends-plus-other-tax-efficient-profit-extraction-strategies-2020-edition-978-1911020417-115949", "name": "Salary Versus Dividends PLus Other Tax Efficient Profit Extraction Strategies", "edition": "2020 Edition" }, "question_posted": "2024-05-26 14:11:39", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/an-increase-in-the-supply-of-us-dollars-by-the-701759", "description": "An increase in the supply of U.S. dollars by the Federal Reserve will raise the value of the dollar because it will stimulate U.S. economic growth raise the value of the dollar because it will lead...", "stars": 0 }, { "url": "\/what-are-managements-responsibilities-related-to-internal-control-over-financial", "description": "What are managements responsibilities related to internal control over financial reporting?", "stars": 3 }, { "url": "\/study-help\/financial-trading-and-investing\/1-sobriety-inc-a-marketer-of-substance-abuse-programs-1794430", "description": "1 . 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