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determine the amount of sale units that wpuld be necessary under break-even sales present and proposed conditons . stuck on questions 5-7 eBook Show Me
determine the amount of sale units that wpuld be necessary under break-even sales present and proposed conditons . stuck on questions 5-7
eBook Show Me How Calculator Print Item 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 70,200 units at a price of $75 per unit during the current year. Its income statement for the current year is as follows: Sales $5,265,000 2,600,000 $2,665,000 Cost of goods sold Gross profit Expenses: Selling expenses $1,300,000 Administrative expenses 1,300,000 Total expenses Income from operations 2,600,000 $65,000 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative 50% 50% expenses Management is considering a plant expansion program that will permit an increase $450,000 in yearly sales. The expansion will increase fixed costs by $45,000, 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. Enter the final answers rounded to the nearest dollar. Total variable costs 3,445,000 Total fixed costs 1,755,000 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the final anders rounded to two decimal places. Check My Work Previous Email Instructor Save and Exit Submit Assignment for Grading the total van een teamets Torrecurrent year. Enter the intallaliswers rounded to be feestda. Total variable costs 3,445,000 Total fixed costs 1,755,000 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 49.07 Unit contribution margin 25.93 3. Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number. 67,682 units 4. Compute the break-even sales (units) under the proposed program for the following year. Enter the final answers rounded to the nearest whole number. 69,418 units Step by Step Solution
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