Print item eBook Show Me How Calculator 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 98,550 units at a price of $84 per unit during the current year. Its income statement for the current year is as follows: Sales Cost of goods sold $8,278,200 4,088,000 $4,190,200 Gross profit Expenses: Selling expenses Administrative expenses $2,044,000 2,044,000 4,088,000 Total expenses Income from operations $102,200 The division of costs between fixed and variable is as follows Variable Fixed 7096 30% 75% 25% Cost of goods sold Selling expenses Administrative expenses 50% 50% in veadly sales. The expansion will increase fixed Management is considering a plant expansion program that will permit an increase of $7 costs by $75,600, but will not affect the relationship between sales and variable Check My Work Check My Work JULICI Ueh dilsweis TuneU tu the nearest whole number units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $102,200 of income from operations that was earned 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 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. 8. Based on the data given, would you recommend accepting the proposal? a. In favor of the proposal because of the reduction in break-even point. b. In favor of the proposal because of the possibility of increasing income from operations. c. In favor of the proposal because of the increase in break-even point. d. Reject the proposal because if future sales remain at the current level, the income from operations will increase. e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales. Choose the correct answer. Previous Next Check My Work Submit Assignment for Grading All work saved. Save and Exit