i need help with 6 asked for help and it was wrong can not figure it out
Question:
i need help with 6 asked for help and it was wrong can not figure it out myself please help thanks Laura landers
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, sold 76,950 units at a price of $48 per unit during the current year. Its income statement for the current year is as follows:
Sales$3,693,600
Cost of goods sold1,824,000
Gross profit$1,869,600
Expenses:
Selling expenses$912,000
Administrative expenses 912,000
Total expenses1,824,000
Income from operations$45,600
The division of costs between fixed and variable is as follows:
Cost of goods sold variable 70% fixed30%
Selling expenses variable 75% fixed 25%
Administrative expenses variable 50% fixed 50%
Management is considering a plant expansion program that will permit an increase of $288,000 in yearly sales. The expansion will increase fixed costs by $28,800, but will not affect the relationship between sales andvariable costs.
Required:
1.Determine the total variable costs and thetotal fixed costsfor the current year. Enter the final answers rounded to the nearest dollar.
Total variable costs $2416800
Total fixed costs $1231200
2.Determine (a) the unit variable cost and (b) theunit contribution marginfor the current year. Enter the final answers rounded to two decimal places.
Unit variable cost $31.41
Unit contribution margin $16.59
3.Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number.
74213 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.
75949 units
5.Determine the amount of sales (units) that would be necessary under the proposed program to realize the $45,600 of income from operations that was earned in the current year. Enter the final answers rounded to the nearest whole number.
78698 units
6.Determine the maximum income from operations possible with the 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.
$16800 Income
8.Based on the data given, would you recommend accepting the proposal?
- 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.
- Reject the proposal because if future sales remain at the current level, the income from operations will increase.
- Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales.
Choose the correct answer.
b