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The ABAist| Bevintedi Patal rur alle eseti Total fient cour Drua wative tist itrit contritutith magis timequiredt Pesquirndit Uhist wistite cour intitis any 3. Cnoute the break-wer sales (urits) for the current yean. urits 4. Compute the brewk evensales (uruts) under the propesed pregram for the following veat. uritn Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 129,6Da units at a price of 5132 per unit during the current year, Its iscame staternent is as fallows: The division of costs between varable and fixed is as follows: Management is considering a plant expansion program for the following yoat that will permit an increase of 51,320,000 in yearly sales. The expansion will increase fixed casts by $176,000, but will not alfect the telaticnship between sales and variable costs. Requiredt 1. Determine the total variable costs and the total fixed casts for the current yean. 1. Determine the total variable costs and the total fixed costs for the current year. Total variable cost Total fixed costs 2. Determine \{a) the unit vanable cost and (b) the unit contribuber murdin for the current year. Lnit variable cost Unit coatribution margin 3. Compute the break-even sales (units) for the current year. units: 4. Compute the break-even sales (units) under the proposed program for the following year. units vest, units 6. Determane the maxamum income from operatisns possible with the expanded plant. 4 7. If the groposal is accepted and sales remain at the current level, what will the income or loss trom operations be for the following year? . 8. Based on the data grven, would you recommend accepting the proposal? a. In favor of the proposal because of the reduction in break-even point. 3. Compute the bresk-even sales (units) for the current year. units 4. Compute the break-even sales (urits) under the proposed program for the following yeac. units 5. Determine the amount of sales \{units) that would be necessary under the proposed prograt to realize the 56,195,200 of income from operations that was eamed in the ourrent vear. units 6. Determine the maximum income from operations possible with the espanded flant. 7. If the proposal is accepted and saies remain at the current level, what will the income or loss from ogerabons be for the following yar? 5 8. Based on the diata given, weald you recommend accepting the proposal? a. In favoe of the proposal because of the reduction in break-even point. b. In favor of the proposal because of the possibilay of increasing income from operations. c. In favor of the proposal because of the increase in break-eves point. d. Reject the proposal because if future sales remain at the current level, the income from operations will increase. e. Reject the proposal because the sales necessary to maintain the current income from operations nould be below the current year sales. Choose the correct answer. 3. Compute the break-even soles (units) for the current year. units 4. Compute the break-even sales (units) under the prooosed program for the following year. units 5. Determine the amount of sales (units) that would be recessary under the proposed program to realize the $6,195,200 of income from operatigns that was earned in the ourrent yeat units 6. Determine the maximum income from operations possible with the expanded plant: 4 7. If the proposal is accepted and sales remain at the current level, what will the income of loss from operations be for the following year? 5 8. Eased on the e 4comenend accepting the proposal? a. In favor of the proposal becriuse of the reduction in breakeven point. b. In favor of the proposal because of the possibility of increasing income from operatians. c1 in favot of the proposal because of the increase in break-even point. d. Reject the proposal because of future sales remain at the current level, the income from oberations will increase, e. Reject the priposal because the sales necessary to maintain the current income from aperations wbuld be below the curtent year sales. Choose the correct
