Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 161,800 units at a price of $54 per unit during the current year. Its Income statement is as follows: Sales $8,737,200 3,096,000 Cost of goods sold Gross profit Expenses: $5,641,200 $1,548,000 Selling expenses Administrative expenses 936,000 Total expenses 2,484,000 Income from operations $3,157,200 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 5096 50% Administrative 30% 70% expenses Management is considering a plant expansion program for the following year that will permit an increase of $810,000 in yearly sales. The expansion will increase fixed costs by $108,000, but will not affect the relationship between sales and variable costs