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I need help with 5 6 and 7 Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 154,100 units at

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I need help with 5 6 and 7

Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 154,100 units at a price of $111 per unit during the current year. Its income statement is as follows: Sales $17,105,100 6,068,000 Cost of goods sold Gross profit $11,037,100 Expenses: Selling expenses $3,034,000 Administrative expenses 1,813,000 Total expenses 4,847,000 Income from operations $6,190,100 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 50% 50% Administrative expenses 30% 70% Management is considering a plant expansion program for the following year that will permit an increase of $1,554,000 in yearly sales. The expansion will increase fixed costs by $207,200, 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 year. Total variable costs 5,701,700 Total fixed costs 4,070,300 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost $ 37 Unit contribution margin $ 74 3. Compute the break-even sales (units) for the current year. 55,004 units 4. Compute the break-even sales (units) under the proposed program for the following year. 76,004 units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the 56,190,100 of income from operatio earned in the current year. units 6. Determine the maximum income from operations possible with the expanded plant. s 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? 8. Based on the data given, would you recommend accepting the proposal

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