Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 120,200 units at a price of $75 per unit during the current year. Its income statement is as follows: Sales Cost of goods sold $9,015,000 3,200,000 Gross profit $5,815,000 Expenses: Selling expenses $1,600,000 Administrative expenses 950,000 Total expenses 2,550,000 $3,265,000 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 $750,000 in yearly sales. The expansion will increase fixed costs by $100,000, 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