Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 133,600 units at a price of $120 per unit during the current year. Its income statement is as follows: Sales Cost of goods sold Gross profit Expenses: Selling expenses $2,840,000 Administrative expenses 1,720,000 $16,032,000 5,680,000 $10,352,000 Total expenses 4,560,000 $5,792,000 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 $1,440,000 in yearly sales. The expansion will increase fixed costs by $192,000, 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 fived costs