Question
darby company, operating at full capacity, sold 118,800 units at a price of $132 per unit during the current year. its income statement for the
darby company, operating at full capacity, sold 118,800 units at a price of $132 per unit during the current year. its income statement for the current year is as follows: sales $15,681,600 cost of goods sold 7,744,000 gross profit $7,937,600 expenses: selling expenses $3,872,000 administrative expenses 3,872,000 total expenses 7,744,000 income from operations $193,600 the division of costs between fixed and variable is as follows: variable fixed cost of goods sold 70% 30% selling expenses 75% 25% administrative expenses 50% 50% management is considering a plant expansion program that will permit an increase of $1,452,000 in yearly sales. the expansion will increase fixed costs by $145,200, 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. enter the final answers rounded to the nearest dollar. total variable costs $ total fixed costs $ 2. determine (a) the unit variable cost and (b) the unit contribution margin for the current year. enter the final answers rounded to two decimal places. unit variable cost $ unit contribution margin $ 3. compute the break-even sales (units) for the current year. enter the final answers rounded to the nearest whole number.
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