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, told 79,650 units at a price of 878 per unit during the current year. Its Income statement for the current year is as follows: Sales $6,212,700 Cost of goods sold 3,068,000 Gross profit $3,144,700 Expenses: Selling expenses $1,534,000 Administrative expenses 1,534,000 Total expenses 3,068,000 Income from operations $76,700 The division of costs between faced and variable is as follows: Variable Fixed Cost of goods sold 70% 30% 75% 25 Selling expenses Administrative 50% 50% expenses Management is considering a plant expansion program that will permit an increase of $468,000 in yearly sales. The expansion will increase fixed costs by $46,800, but will not affect the relationship between sales and variable costs. Required: Previous Net) 1. Determine the total variable costs and the total fixed costs for the current year. Enter the final answers rounded to the nearest dollar Total variable costs Total foved costs 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the final answers founded to two decimal places. Unit variable cost Unit contribution margin 3. Compute the break even sales (units) for the current year. Enter the final 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 final answers rounded to the nearest whole number units 5. Determine the amount of sales (units) per would be necessary under the proposed program to realize the $76,700 or income from operations that was eamed in the current year Enter the final answers rounded to the nearest whole number units 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 fous from operations be for the following year? Enter the final answer rounded to the nearest dollar 8. 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. Previous Next Check My Work