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 113,400 units at a price of $129 per unit during the current year. Its income statement for the current year is as follows:

Sales$14,628,600Cost of goods sold7,224,000Gross profit$7,404,600Expenses:Selling expenses$3,612,000Administrative expenses3,612,000Total expenses7,224,000Income from operations$180,600

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 $1,290,000 in yearly sales. The expansion will increase fixed costs by $129,000, but will not affect the relationship between sales andvariable costs.

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

___________

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.