Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 174,900 units at a price of $54 per unit during the current year. Its income statement is as follows: The division of costs between variable and fixed is as follows: variable costs. Required: 1. Determine the totai variable costs and the total fixed costs for the current year. Total variable costs Total fixed costs 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current war. Unit variable cost Unit contribution margin 3. Compute the break-even sales (units) for the current year. units 4. Compute the break-even sales (units) unter the proposed program for the following year. units units 6. Determine the maximum income from operations possibie with the exparded plant. 7. If the proposal is acceptod and salms remain at the current level, what will the incocne or loss from operations be for the following year? 8. Based on the data alven, would you recommend accepting the proposal? a. In favor of the proposat becasse of the reduction in break-even point. b. In favor of the proposal because of the possibility of Increasing income from operations. c. In favar of the proposal hecause of the increase in break-even point. d. Rejnct the propasal because if future sales remain at the current level, the income from aperations will increase: e. Reject the proposal hecause the sales mecessary to maintain the current income from operations would be below the currerit year salers Onpose the correct ansiver