Teaching and L. 10 Things to include in Your Startu 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 95,850 units at a price of $135 per unit during the current year. Its income statement for the current year is as follows: Sales $12,939,750 Cost of goods sold 6,390,000 Gross profit $6,549,750 Expenses: Selling expenses $3,195,000 Administrative expenses 3,195,000 Total expenses 6,390,000 Income from operations $159,750 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 $1,215,000 in yearly sales. The expansion will increase fixed costs by $121,500, but will not affect the relationship between sales and variable costs. Previous Check My Work al fixed costs 4,313,250 Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the final answers rounded to tw cimal places. nit variable cost 88.33 nit contribution margin 46.67 . Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number. 92,420 units 4. Compute the break-even sales (units) under the proposed program for the following year. Enter the final answers rounded to the neare whole number 95,024 units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $159,750 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. Income 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 Previous Check My Work All work saved. Email Instructor Save and Exit Submit Assignment for Grading