Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and...

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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 87,750 units at a price of $48 per unit during the current year. Its income statement for the current year is as follows: Sales Cost of goods sold Gross profit Expenses: Selling expenses $1,040,000 Administrative expenses 1,040,000 $4,212,000 2,080,000 $2,132,000 Total expenses Income from operations 2,080,000 $52,000 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $336,000 in yearly sales. The expansion will increase fixed costs by $33,600, but will not affect the relationship between sales and variable costs. 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 87,750 units at a price of $48 per unit during the current year. Its income statement for the current year is as follows: Sales Cost of goods sold Gross profit Expenses: Selling expenses $1,040,000 Administrative expenses 1,040,000 $4,212,000 2,080,000 $2,132,000 Total expenses Income from operations 2,080,000 $52,000 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $336,000 in yearly sales. The expansion will increase fixed costs by $33,600, but will not affect the relationship between sales and variable costs.