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Break-Even Sales Under Present and Proposed Conditions Darby Company, operating ot full capacity, sold 141,000 units at a price of 593 per unit during the current year. Its income statement is as follows: The division of costs between variable and fixed is as follows: Management is considering a plant expansion program for the following year that will permit an increase of $1,209,000 in yearly salec. The expansion will incresse fixed costs by 5161,200 , but will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable costs and the total fixed costs for the current yeat. Management is considening a plant expansion program for the following year that will permit an encrease of 51,209,000 in yearly salei, the expanseon wil increase fixed conts by. 5161,200 , but wilt not affect the relationship between saies and varable costs. Required: 1. Detemine the total variable costs and the total fooed costs foc the current year: Total variable costs Total fixed costs 2. Determine (a) the unit vanable cost and (b) the unut contributoon margin for the current veac. Unit variable cast Unit contritution margin 1 3. Carmpute the break-even sales (units) for the current year. x units 4. Compute the break-even sales (units) under the proposed program for the following vear. x inns. 5. Determine the amount of sales (units) that would be necessary ander the sroposed program ra realize the $4,743,000 of ncome from operations that wav eamed in the curient vear x units 6. Deterinine the maximum incomn from operitions possible with the expanded plant. x 7. If the prepesal is accested and sales remain at the current level, what will the nicone or loss from operitions be for the folowing year? x x