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can anyone help me with this one? Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 120,200 units at a
can anyone help me with this one?
Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 120,200 units at a price of $72 per unit during the current year. Its income statement is as follows: Management is considering a plant expansion program for the following year that will permit an increase of $720,000 in yearly sales. The expansion will increase fixed costs by $96,000, but will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable costs and the total fixed costs for the current year. TotalvariablecostsTotalfixedcosts$V2,884,800$2,635,200 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. 3. Compute the break-even sales (units) for the current year. 54,900 unitsStep by Step Solution
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