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Pont 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

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Pont 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 90,450 units at a price of $63 per unit during the current year. Its income statement for the current year is as follows: Sales $5,698,350 Cost of goods sold 2,814,000 Gross profit $2,884,350 Expenses: Selling expenses $1,407,000 Administrative expenses 1,407,000 Total expenses 2,814,000 Income from operations $70,350 The division of costs between fixed and variable is as follow Variable Fixed Cost of goods sold 70% 301 Selling expenses 75% 25W Administrative 50% 50% expenses Management is considering a plant expansion program that will permit an increase of $504,000 in yearly sales. The expansion will increased costs by 550,400, but will not affect the relationship between sales and variable costs Required: 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 4,009,950 X Total variable costs 4,009,950 X Total fixed costs 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the final answers rounded to the decimal places Unit variable cost Unit contribution margin 3. Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number, units 4. Compute the teak-even sales (units) under the proposed program for the following year, enter the final answers rounded to the nearest whole number 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $70,350 or income from operations that was eared in the Current year. Enter the final answers rounded to the nearest whole number 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 proposals accepted and sales remain at the current level, what the income or lots from operations be for the following year? Enter the final answer rounded to the nearest do Income

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