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Break-Even Sales Under Present and Proposed Conditions Darby Company operating at full capacity, sold 109,100 units at a price of 575 per unit during the
Break-Even Sales Under Present and Proposed Conditions Darby Company operating at full capacity, sold 109,100 units at a price of 575 per unit during the current year. Its Income statement is as follows: $8.509,800 3,016,000 $5,493,000 Sales Cost of goods told Gross profit Expenses Selling expenses Administrative expenses $1,500,000 910.000 Total expenses Income from operations 2,418,000 153,075,000 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold GON 404 Selling expenses 5096 509 Administrative 309 709 expenses 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 $104,000, but will not affect the relationship between sales and variable costs. Required: 8:08 PM
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