I need help figuring out #6!!
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, told 71,550 units at a price of $51 per unit during the current year. Its income statement for the current years as follows: Sales $3,649,050 Cost of goods sold 1,802,000 Gross prof $1,847,050 Expenses Selling expenses $901,000 Administrative expenses 901,000 Total expenses 1,802,000 Income from operations $45,050 The divoon or conta between fixed and variable das Follow Variable Fixed Cost of goods sold 70% 3094 Selling expenses Administrative 50% 50% expenses Management is considering a plant expansion program that will permit an increase of $300,000 in yearly sales. The expansion will increase fixed costs by $30,600, but will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable costs and the total costs for the current year. Enter the final answers rounded to the nearest dollar, Total variable costs 2,387,650 Total fixed costs 1,216,350 754 Book Show Me How Required: 1. Determine the total variable costs and the total fixed costs for the current year. Enter the final answers rounded to the nearest dollar Total variable costs 2,387,650 Total fixed costs 1,216,350 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the final answers rounded to two decimal places Unit variable cost 33.37 Unit contribution margin 17.63 2. Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number 68,993 units 4. Compute the break-even cales (units) under the proposed program for the following year. Enter the float answers rounded to the nearest whole number: 70,729 units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $45,050 or income from operations that was eared in the current year. Enter the final answers rounded to the nearest whole number 73,254 units 6. Determine the maximum income from operations possible with the expanded plant. Enter the final answer rounded to the nearest dollar 7. 11 the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year? Enter the moal answer rounded to the nearest dollar 14,450 Income 1. Based on the data given, would you recommend accepting the proposal? a. In favor of the proposal because of the reduction in break-even point. In favor of the proposal because of the possibility of increasing income from operations In favor of the proposal because of the increase in break even point eBook Show Me How Required: 1. Determine the total variable costs and the total nixed costs for the current year. Enter the final answers rounded to the nearest dollar. Total variable costs 2,387,650 Total fixed costs 1,216,350 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the final answers rounded to two decimal places. Unit variable cost 33.37 Unit contribution margin 17.63 3. Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number, 68,993 units 4. Compute the break-even sales (units) under the proposed program for the following year. Enter the final answers rounded to the nearest whole number. 70,729 units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $45,050 of income from operations that was earned in the current year. Enter the final answers rounded to the nearest whole number. 73,284 units 6. Determine the maximum Income from operations possible with to expanded plant, Enter the final answer rounded to the nearest dollar. 7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year? Enter the final answer rounded to the nearest dollar 14,450 Income 8. Based on the data given, would you recommend accepting the proposal? a. In favor of the proposal because of the reduction in break-even point. b. In favor of the proposal because of the possibility of increasing income from operations. In favor of the proposal because of the increase in break-even point. that he ha cat main that are the inema fomestilling Gred My Work Previous Next > All work saved Email Instructor Save and Submit Agent for Grading