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Darby Company, operating at full capacity, sold 500,000 units at a price of $94 per unit during the current year. Its income statement is as
Darby Company, operating at full capacity, sold 500,000 units at a price of $94 per unit during the current year. Its income statement is as follows: Sales Cost of goods sold Gross profit Expenses $47,000,000 25,000,000 $22,000,000 Selling expenses $4,000,000 Administrative expenses 3,000,000 Total expenses 7,000,000 Income from operations $15,000,000 The division of costs between varlable and fixed is as follows: Cost of goods sold Sellng expenses Administrative Variable 70% 75% Fixed 30% 25% 5096 50%
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