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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,
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 125,550 units at a price of $129 per unit during the current year. Its income statement for the current year is as follows: $16,195,950 Cost of goods sold 7.990000 Carous profit $3,197,950 Expenses: Selling expenses $3.990.000 Administrative expenses 3,999,000 $199.90 Income from opens The division of costs between fladd rate is as follows: Variable Cost of good M inistrative Hemang apat nam that w e expand wan t s by $41,000, but w e affect the relationship between ca r e costs. 1. Determine the total are cold the Deed costs for the current year Enter the final rounded to the unit contribution margin for the current yew Enter the Total costs 2. Determine (a) the unit variable cost and Un articost Unit contribution margin 3. Compute the break even security for the current year. Enter the units 50% Management is considering a plant expansion program that will permit an increase of $1419,000 Increased costs by $141.900, but will not affect the relacionship between sales and a ll costs Required: 1. Determine the total variable costs and the total fred costs for the current year. Enter the final Total variable costs Totalted costs 2. Determica) the unt valable cost and (b) the unit contribution margin for the current year. Enter the final answers rounded to two deal places Unit variable cost Unit contribution margin 3. Compute the break even sales (units for the current year. Enter the finalwers rounded to the whole number 4. Compute the break eve wits units under the proposed program for the following year to the la w er rounded to the cast whole number 5. Determine the amount of its that would be recessary under the proposed to realize the $109,056 of coronariens wat a s the create a final rounded to the rest when 6. Determine the marimum income from cortos poster the delitter then went to the nearest deal for the facing year 7. If the proposal is acted and we remain at the current remain at the current fel, what will the income or oss from operations el what will the m ore from operati Inc I. Based on the data given, would you recommend acepting the propose a. a favor of the root because of the reaction is break even point in oppose of the ower incompati in favor of the proposal because of the increase in break even point d. ct the proposal became future remain at the current level, the come from Reject the propose the car to maintain the current income ons will create would be below the cur s
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