ONLY NEED HELP WITH QUESTION 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, sold 95,850 units at a price of $87 per unit during the current year. Its income statement for the current year is as follows:

Sales			$8,338,950
Cost of goods sold			4,118,000
Gross profit			$4,220,950
Expenses:
Selling expenses	$2,059,000
Administrative expenses	2,059,000
Total expenses			4,118,000
Income from operations			$102,950

The division of costs between fixed and variable is as follows:

	Variable		Fixed
Cost of goods sold	70%		30%
Selling expenses	75%		25%
Administrative expenses	50%		50%

Management is considering a plant expansion program that will permit an increase of $783,000 in yearly sales. The expansion will increase fixed costs by $78,300, but will not affect the relationship between sales and variable costs.

Required:

6. Determine the maximum income from operations possible with the expanded plant. Enter the final answer rounded to the nearest dollar. $