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eBook Show Me How Print Item Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby
eBook Show Me How Print Item 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 72,900 units at a price of $117 per unit during the current year. Its income statement for the current year is as follows: Sales Cost of goods sold Gross profit Expenses: $8,529,300 4,212,000 $4,317,300 Selling expenses $2,106,000 Administrative expenses 2,106,000 Total expenses 4,212,000 Income from operations $105,300 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative 50% 50% expenses Management is considering a plantar son program that will permit an increase of $702,000 in veadly sales. The expansion will increase fixed costs by 370 200. but will not affect the relationship between sales and variable to Check My Work
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