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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 at full capacity, sold
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 118,800 units at a price of $63 per unit during the current year. Its income statement for the current year is as follows:
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 118,800 units at a price of $63 per unit during the current year. Its income statement for the current year is as follows Sales Cost of goods sold Gross profit Expenses $7,484,400 3,696,000 $3,788,400 Selling expenses $1,848,000 Administrative expenses 1,848,000 Total expenses 3,696,000 Income from operations $92,400 The division of costs between fixed and variable is as follows Variable Fixed Cost of goods sold Selling expenses Administrative expenses Management is considering a plant expansion program that will permit an increase of $693,000 in yearly sales. The expansion will increase fixed costs by $69,300, but wll not affect the relationship between sales and variable costs. 70% 75% 50% 30% 25% 50% Required: 1. Determine the total variable costs and the total fixed costs for the current year. Enter the final answers rounded to the nearest dollan 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 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 unitsStep by Step Solution
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