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 102,600 units at a price of $129 per unit during the current year. Its income statement for the current year is as follows:

Sales$13,235,400Cost of goods sold6,536,000Gross profit$6,699,400Expenses:Selling expenses$3,268,000Administrative expenses3,268,000Total expenses6,536,000Income from operations$163,400

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 $1,161,000 in yearly sales. The expansion will increase fixed costs by $116,100, but will not affect the relationship between sales andvariable costs.

Required:

1.Determine the total variable costs and thetotal fixed costsfor the current year. Enter the final answers rounded to the nearest dollar.

Total variable costs$fill in the blank 1

Total fixed costs$fill in the blank 2

2.Determine (a) the unit variable cost and (b) theunit contribution marginfor the current year. Enter the final answers rounded to two decimal places.

Unit variable cost$fill in the blank 3

Unit contribution margin$fill in the blank 4

3.Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number.

fill in the blank 5

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.

fill in the blank 6

units

5.Determine the amount of sales (units) that would be necessary under the proposed program to realize the $163,400 of income from operations that was earned in the current year. Enter the final answers rounded to the nearest whole number.

fill in the blank 7

units

6.Determine the maximum income from operations possible with the expanded plant. Enter the final answer rounded to the nearest dollar.

$fill in the blank 8

7.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.

$fill in the blank 9

Income