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Having a hard time understanding. help would be greatly appreciated. Freak-Even Sales Under Present and Proposed Conditions Darby Company, operating of fuil capocity, sold 105,400

Having a hard time understanding. help would be greatly appreciated.
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Freak-Even Sales Under Present and Proposed Conditions Darby Company, operating of fuil capocity, sold 105,400 units at a price of 584 per unit during the current year. Its income statement is as follows: The diviaian of costs between variable and fixed is as follens: Kanagemant la considering a plant expansion pregrem for the following year that will permit an increole of s756, 000 in yearly sales. The expanaion will increase fixed coits by 1100,900 , but will not affect the relstionship betwenn sakes and vanable conta. 1. Detarmine the total variable costs and the total fined costs for the current year, 2. Determine (a) the unit variable cost and (b) the unit contribubion marein for the curtent vear Vait varisble cost x Unit contribution margin x 3. Compute the break-eveni saies (units) for the current year. x uniti 4. Compute thw bresk-even whes (units) unider the propoted program for the following year. units 5. Determine the smount of sales (unta) that wouid be necesary under the proposed peognan to raalee tha 43.297,600 of income from operations that was earned in the current. wem 0. Determine the maximum incapene trom opeabians posible with the nopansed plant. 4. Compute the break-even sales (units) under the proposed program for the following yoar: units 5. Determine the amount of sales (units) that would be necessary under the preposed program to realize the $3,197,600 of income from operations that was earned in the current Yeat units 6. Determine the maximum income trom operations postible with the expanded plant: 7. If the deooosal it accepted and sales remein at the curtent level, what will the income or loss from operations be for the following year? 8. Bhted on the date given, would you recommend accepting the proposal? A. In fowor of the proposal because of the reduction in treak-even point. b. in favor of the proposal becavse of the possibility of increasing income from operations, c. Is tiver of the proposel becsule of the increose in break-even point. d. Feject the proposal bectuse if future males remain at the current level, the income from operotions win increase. e. Reject the proposai because the sales necestery te maintain the current income from operations would be below the current year sales. Cheose the comkit

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