Pintom Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at ful capacity, sold 171,200 units at a price of $99 per unit during the current year, its income statement is as follows: Sales $16,946,800 Cost of goods sold 6,000,000 Gross profit $10,942,800 Expenses Selling expenses $3,003,000 Administrative expenses 1,815,000 Total expenses 4,315.000 income from operations $6,124,800 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 400 Selling expenses 50% 50% Administrative 309 70% expenses Management is considering plant expansion program for the following year that will permit an increase of 1,386,000 in yearly sales. The escansion will increased costs by $184,800, but will not affect the relationship between sales and variable Required: 1. Determine the total variable costs and the totale for the current year Total variable costs Total fixed costs 2. Determine (o) the unit vartable cost and (b) the main for the current year Ut variable cost Management is considering a plant expansion program for the following year that will permit an increase of $1,386,000 in yearystles. The expansion will increase find cons by $184,800, Dot 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 Total variable costs Total fixed costs 2. Determine (a) the unable cost and (b) the unit contribution margin for the current year Unit variable cost Unit contribution margin 3. Comote the break-even seles (units for the current year units 4. Compute the break even les units) under the proposed arogram for the following year 5. Determine the amount of sales (units) that would be necessary under the proposed program to the 56.124, of incorom operations that came is the one De maximum income from operation possole with the garded at A Moncepted and sales remain at the current level what will the income operation before Income 8. Son the given would you recommend accepting the proposal favor the property of the reduction in break-even in b. In favor of the proper because of the possity of increasing income from the other because of the increase broneen point to the futures in at the current level the income from operations increase e Reject them because the sales necesary to main the current came from weld be botherent years hovoul Check My Work