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Determine the amount of sales (units) that would be necessary under BreakEven Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold
Determine the amount of sales (units) that would be necessary under BreakEven Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold ?6,950 units at a price of $129 per unit during the current year. Its income statement for the current year is as follows: Sales $9,925,550 Cost of goods sold 4,902,000 Gross prot $5,024,550 Expenses: Selling expenses $2,451,000 Administrative expenses 2,451,000 Total expenses 4,902,000 Income from operations $122,550 The division of costs between xed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 25% 25% Administrative 50% 50% EKDEI'ISES Management is considering a plant expansion program that will permit an increase of $34,000 in yearly sales. The expansion will increase xed costs by $70,400, but will not affect the relationship between sales and variable costs. .w'un u... 1. Determine the total variable costs and the total xed costs for the current year. Enter the nal answers rounded to the nearest dollar. Total variable costs C Total xed costs C 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the nal answers rounded to two decimal places. Unit variable cost ii:] Unit contribution margin 3. Compute the breakeven sales (units) for the current year. Enter the nal answers rounded to the nearest whole number. | units 4. Compute the break-even sales (units) under the proposed program for the following year. Enter the nal answers rounded to the nearest whole number. | units 5. Determine the amount of sales (units) that would be necessaryr under the proposed program to realize the $122,550 of income from operations that was earned in the current year. Enter the nal answers rounded to the nearest whole number. | units 6. Determine the maximum income from operations possible with the expanded plant. Enter the nal answer rounded to the nearest dollar. #2 I. 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 nal answer rounded to the nearest dollar
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