Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me with question 6! I am at a total loss! Question 5 was also a hard one to figure out, but I got

Please help me with question 6! I am at a total loss! Question 5 was also a hard one to figure out, but I got there by using these numbers. 100,100 / 22.81 = 4388.42 + 121,381 = 125,769.42. Added information. Thank you!

image text in transcribedimage text in transcribed
eBook Show Me How Calculator Print Item 1. Determine the total variable costs and the total fixed costs for the current year. Enter the final answers rounded to the nearest dollar. Total variable costs 5,305,300 Total fixed costs 2,702,700 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the final answers rounded to two decimal places. Unit variable cost 43.19 Unit contribution margin 22.81 3. Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number. 118,488 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. 121,381 V units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $100,100 of income from operations that was earned in the current year. Enter the final answers rounded to the nearest whole number. 125,769 v 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. S 34,100 v Income v Check My Work Previousent eBook Show Me How Calculator Print Item 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 122,850 units at a price of $66 per unit during the current year. Its income statement for the current year is as follows: Sales $8,108,100 Cost of goods sold 4,004,000 Gross profit $4,104,100 Expenses: Selling expenses $2,002,000 Administrative expenses 2,002,000 Total expenses 4,004,000 Income from operations $100,100 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative 50% 50% expenses Management is considering a plant expansion program that will permit an increase of $660,000 in yearly sales. The expansion will increase fixed costs by $66,000, but will not affect the relationship between sales and variable costs. ems Check My Work. Previous

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Equations & Answers

Authors: Barcharts, BarCharts Inc

1st Edition

1423218248, 9781423218241

More Books

Students also viewed these Accounting questions

Question

Do not get married, wait until I come, etc.

Answered: 1 week ago

Question

Do not come to the conclusion too quickly

Answered: 1 week ago

Question

Engage everyone in the dialogue

Answered: 1 week ago