Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 114,800 units at a price of $99 per unit during the current year. Its income statement is as follows: Sales Cost of goods sold Gross profit Expenses: $2,013,000 Administrative expenses 1,221,000 Total expenses Selling expenses 3,234,000 Income from operations $4,105,200 The division of costs between variable and fixed is as follows: Fixed Cost of goods sold Selling expenses Administrative expenses Variable 60% 50% Total variable costs Total fixed costs $11,365,200 4,026,000 $7,339,200 30% 40% 50% 70% Management is considering a plant expansion program for the following year that will permit an increase of $891,000 in yearly sales. The expansion will increase fixed costs by $118,800, 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.

Break-tven Sales Ueder Present asd Proposed Conditions Darby Company, aperating at hull capacio, sold 114,800 units at a price of $99 per unit durins the current vear its income statement is as follows: The division of coots between variatle and fixed is an follems. nevulued : Detemine (a) the unit variable cast and (b) the une contrabion margin for the current yeat. unts 4. Combule the trreak-even wies (enits) under the proposed program for the folowing vebt. unke units