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Sing in the Frank. Choose payment m... Cart hStream TV and Mov... OG BTS PayPal Checkout Login eBook Show Me How Print Item Determine the
Sing in the Frank. Choose payment m... Cart hStream TV and Mov... OG BTS PayPal Checkout Login eBook Show Me How 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 128,250 units at a price of $129 per unit during the current year Sales $16,544,250 Cost of goods sold 8,170,000 Gross profit $8,374,250 Expenses: Selling expenses $4,085,000 Administrative expenses 4,085,000 Total expenses 8,170,000 Income from operations $204,250 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% 75% 25% Selling expenses Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $1,548,000 in yearly sale Required: 1. Determine the total variable costs and the total fixed costs for the current year. Enter the final answers rou Total variable costs Total fixed costs 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the fina Unit variable cost Check My Work All work saved. eBook Show Me How Print item 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 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 two 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 break-even sales (units) under the proposed program for the following year. Enter the final answers rounded to the nearest whole numbe units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $204,250 of income trom operations that w 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 8. Based on the data glven, 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 ome 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 Check My Work All work saved
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