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 116,100 units at a price of $132 per unit during the current year. Its income statement for the current year is as follows:

Sales $15,325,200

Cost of goods sold 7,568,000

Gross profit $7,757,200

Expenses:

Selling expenses $3,784,000

Administrative expenses 3,784,000

Total expenses 7,568,000

Income from operations $189,200

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

Variable Cost of goods sold 70% Fixed 30%

Variable Selling expenses 75% Fixed 25%

Variable Administrative expenses 50% Fixed 50%

Management is considering a plant expansion program that will permit an increase of $1,188,000 in yearly sales. The expansion will increase fixed costs by $118,800, but will not affect the relationship between sales and variable costs.

I need help understanding how to find the answer for #6. Please show all work so I can follow along.

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

Thank you.