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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 95,850 units at a price of $99 per unit during the current year. Its income statement for the current year is as follows:

Sales$9,489,150Cost of goods sold4,686,000Gross profit$4,803,150Expenses:Selling expenses$2,343,000Administrative expenses2,343,000Total expenses4,686,000Income from operations$117,150

The division of costs between fixed and variable is as follows:

VariableFixedCost of goods sold70%30%Selling expenses75%25%Administrative expenses50%50%

Management is considering a plant expansion program that will permit an increase of $792,000 in yearly sales. The expansion will increase fixed costs by $79,200, but will not affect the relationship between sales andvariable costs.

Required:

1.Determine the total variable costs and thetotal fixed costsfor the current year. Enter the final answers rounded to the nearest dollar.

Total variable costs$Total fixed costs