Determine the amount of sales (units) that would be necessary under

Break-Even Sales Under Present and Proposed Conditions

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 105,300 units at a price of $111 per unit during the current year. Its income statement for the current year is as follows: Sales Cost of goods sold Gross profit Expenses $11,688,300 5,772,000 $5,916,300 Selling expenses $2,886,000 Administrative expenses 2,886,000 Total expenses 5,772,000 Income from operations $144,300 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold Selling expenses Administrative expenses Management is considering a plant expansion program that will permit an increase of $888,000 in yearly sales. The expansion will increase fixed costs by $88,800, but will not affect the relationship between sales and variable costs. 70% 30% 5% 25% 50% 50%