Darby Company, operating at full capacity, sold 176,600 units at a price of $72 per unit during the current year. Its income statement is as follows: $12,715,200 Sales Cost of goods sold 4,512,000 $8,203,200 Gross profit Expenses: Selling expenses $2,256,000 Administrative expenses 1,344,000 Total expenses Income from operations 3,600,000 $4,603,200 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 50% 50% Administrative 30% 70% expenses Management is considering a plant expansion program for the following year that will permit an increase of $1,006,000 in yearly sales. The expansion will increase fixed costs by $134,400, but will not affect the relationship between sis and i Required: 1. Determine the total variable costs and the total fand costs for the current year Tital variable costs Tad 2. Determine (a) the unit variable cost and (b) the unit contributin margin for the current year Unit variable cost Unit contribution margin 3. Compute the break even sales (unit) for the current year 4. Compute the break-even sales (units) under the proposed program for the wing year 5. Oefen the amount of sales (unit) that would be necessary under the proposed program to realize the $4,403,200 of income from operations that was earned in the current year Darby Company, operating at full capacity, sold 176,600 units at a price of $72 per unit during the current year. Its income statement is as follows: Sales Cost of goods sold Gross profit Expenses: $12,715,200 4,512,000 $8,203,200 Selling expenses $2,256,000 Administrative expenses 1,344,000 Total expenses Income from operations 3,600,000 $4,603,200 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 50% 50% Administrative expenses 30% 70% Management is considering a plant expansion program for the following year that will permit an increase of $1,008,000 in yearly sales. The expansion will increase fixed costs by $134,40 Required: 1. Determine the total variable costs and the total fixed costs for the current year Total variable costs x Total fixed costs x 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year Unit variable cost Unit contribution margin 3. Compute the break-even sales (units) for the current year X units 4. Compute the break-even sales (units) under the proposed program for the following year units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $4,603,200 of income from operations that was earned in the current year units 6. Determine the maximum income from operations possible with the expanded plant. 7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year