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Determine the amount of sales (units) that would be necessary under Break Even Sales Under Present and proposed Conditions Darby Company, operating a packy, sold

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Determine the amount of sales (units) that would be necessary under Break Even Sales Under Present and proposed Conditions Darby Company, operating a packy, sold 110,700 units at a price of $114 perunt during the current years income statement for the current year is as Sales $12,619.000 Cost of goods sold Gross prot $6,387,000 Expenses $3,116.000 Administrative expenses 3,116.000 local expenses 6,232,000 Income from operations $155.000 The division of costs between faced and variable is as follows: Variable Fixed Cost of goods sold 30% Selling expenses 25% Administrative expenses SON Management is considering a plant expansion program that will permet an increase of $1,026,000 in Yearly sales. The expansion will increase foed costs by $102,600, but will not affect the relationship between Required: 1. Determine the total variable costs and the total fored costs for the current year. Enter the final answers rounded to the nearest dollar Total variable costs Total fixed costs 2. Determine (a) the unit variable cost and the unit contribution margin for the current year. Enter the final answers rounded to two decimal places Unt variable cost Unt contribution margin 3. Compute the break even sales units) for the current year. Enter the final answers rounded to the nearest whole number Check My Work Hequired: 1. Determine the total variable costs and the total faced costs for the Total variable costs Total feed costs 2. Determine the unit warble cost and by the unit concreton magn for the current year Enter the fanswers rounded to two decimal places Unit variable cost Unt contribution margin 2. Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number 4. Compute the break even sales u n der the proposed program for the following yearter the rawers rounded to the nearest whole number 5. Determine the amount of sales funt that would be necessary under the prosed program to realize the $155.000 of income from period that was ewed in the current yem Enter the final answers 6. Determine the maximum come from operations possible with the expanded plant. Enter the answer round to the nearest della 2. If the pro s acepted and sales reman at the current level what w e come or loss from operations be for the following e nter the inalans . Based on the data given, would you recommend accepting the proposal a. In favor of the proposal because of the reduction in break even point. b. In favor of the proposal because of the possibility of increasing income from operations c. In favor of the proposal because of the increase in break even point d. Reject the proposal because future sales reman at the current level, the income from operations will increase e Reject proposal because the sales necessary to maintain the current income from operations would be below the current year sales Determine the amount of sales (units) that would be necessary under Break Even Saus Under Present and Proposed Conditions Darby Company operating at l cap., sold 110,700 units at a price income statement for the current year is as follows Sales $12.619,800 6232.000 Cost of goods sold Gross proft $6,387,800 Expenses Song expenses $3,116,000 Administrative expenses 3,116,000 Total expenses 6,282,000 Income from operations The division of costs between forced and variable is as follows: Variable Forced Cost of goods sold 70% 30% Seling expenses 25% Administrative 50% SOS expenses Management is considering a plant expansion program that will permit an increase of $1,026,000 in yearly sales. The expansion will increase foxed costs by $12,000, but will not affect the relations Required: 1. Determine the total variable costs and the total fed costs for the current yeat Enter the final answers rounded to the nearest dollar Total variable costs Total fixed costs 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year Enter the final answers rounded to two deomplaces. unit contribution margin 3. Compute the break even sales (units) for the current year. Enter the final answers founded to the nearest whole number units Dick Ny Work

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