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 94,500 units at a price of $51 per unit during the current year. Its income statement for the current year is as follows:

Sales$4,819,500Cost of goods sold2,380,000Gross profit$2,439,500Expenses:Selling expenses$1,190,000Administrative expenses1,190,000Total expenses2,380,000Income from operations$59,500

The division of costs between fixed and variable is as follows:

VariableFixedCost of goods sold70%30%Selling expenses75%25%Administrative expenses50%50%

Management is considering a plant expansion program that will permit an increase of $459,000 in yearly sales. The expansion will increase fixed costs by $45,900, but will not affect the relationship between sales andvariable costs.

Required:

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? Enter the final answer rounded to the nearest dollar.