Darby company, operating at full capacity, sold 125,550 units at a price $129
Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 125,550 units at a price of $129 per unit during the current year. Its income statement for the current year is as follows: Sales $16,195,950 7.998,000 Cost of goods sold Gross profit $8,197,950 Expenses Selling expenses $3.999,000 Administrative expenses 3.999,000 Total expenses 2,998.000 Income from operations The division of costs between feed and variables for $199,950 Cost of goods sold Selling expenses Administrative expenses Management is considering a plant expansion program that will permitan increase of $1.419,000 in yearly sales. The expansion will increase fixed costs by $141,900, but will not affee Required: 1. Determine the total variable costs and the total faed costs for the current year. Enter the final answers rounded to the nearest dollar Total variable costs Het is coming t o program that case of $1.410.000 panion will increase d by 14.000, but will of the there was soles and variable Total feed costs 2. Determine (a) the unit c and the contribution for the current and the w ounded to de 4. Comote the relevant under the p rogram for the following the fa t hew 5. Determine the out of that would be necessary under the proposed program to read the 319,050 con that wa s the cre ated the in t eres 6. Determine the ma i n poh the plant head to the ad on the data given, who recommend accepting the in favor of the proposal because of the reduction is break even point sal e s of integr ation favor of the proposal because of the increase in breve point d. Reject the proposal because tre sales remain at the current level, the income from operations will increase Reject the proposal because these necessary to maintain the current income from spam b e the Cho the correct Determine the amount of sales (units) that would be necessary under Break Even Sales Under Present and Proposed Conditions Darty Company, operating at ul capacity, sold 125,550 units at a price of $120 per unit during the current year. Its Income statement for the current year is as follows Sales $16,195,950 7,998.000 Cost of goods sold Gross profit 197,950 Selling expenses $3.990,000 Administrative expenses 3,000,000 Total expenses Income from operations The division of costs between feed and variable is as follows Variable red Cost of goods wild Seling expenses Administrative it an increase of $1,415 Management is coming 10 o an expansion program that l cales ind out Required 1. Determine the total variable costs for the current years the rea d ed Total variable costs Totale con 2. Determine (a) the variation and to the contribution margin for the Un a cout Unit contribution margin 1. Compute the break even sales (units) for the current year. Enter the final expenses Management is considering plant expansion program that will permit an increase of $1.419,000 in yearly sales. The expansion will increased costs by $141 lect the relationship between sales and variat Required: 1. Determine the total variable costs and the total costs for the current year. Enter the final answers rounded to the nearest dollar Total variatie costs 2. Determine (a) the univariate cout and (b) the contribution margin for the current year. Enter the final answers founded to two deca Unitate cost Un contribution margin 1. Compute the break even wes (units) for the current year. Enter the final answers rounded to the nearest whole 4. Compute the break even units) under the proposed program for the following year Enter the final answers rounded to the acest wh 3. Determine the amount of sales (units) that would be necessary under the proposed program to raise the $109.050 of comm uits o n that was cred in the current year. Enter the final answers rounded to the rest 6. Determine the maximum income from operations pou with the expanded plant. Enter the final wer rounded to the rest dolor . If the proposals accepted and sales remain at the current level what will the income or less from operations be for the ne finale rounded to the nearest d e Based on the data oven, w o u recommend accepting the proposal in favor of the o b ce of the reduction brek van pont In favor of the reac h of increasing income from operations lavor of the pool because of the increase in the event at the pro c essert the current income from person would be below
