Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 161,800 units at a price of $90 per unit during the current year. Its income statement is as follows: Sales Cost of goods sold $14,562,000 5,160,000 $9,402,000 Gross profit Expenses: Selling expenses $2,580,000 Administrative expenses 1,560,000 Total expenses Income from operations 4,140,000 $5,262,000 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 50% 50% 30% 70% Administrative expenses Management is considering a plant expansion program for the following year that will permit an increase of $1,170,000 in yearly sales. The expansion will increase fixed costs by $156,000, 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 fixed costs 4,854,000 4,446,000