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Total expenses reak-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 159,800 units at a price of $99 per unit during the current year. Its income statement is as follows: Sales $15,820,200 Cost of goods sold 5,610,000 Gross profit $10,210,200 Expenses: Selling expenses $2,805,000 Administrative expenses 1,683,000 4,488,000 Income from operations $5,722,200 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 $1,287,000 in yearly sales. The expansion will increase fixed costs by $171,600, but will not affect the relationship between sales and variable costs. 6. Determine the maximum income from operations possible with the expanded plant. $ 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