cengage

Unit contribution margin $ 33.19 3. Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number. 104,128 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 number. units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $ 128,000 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. 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 108,000 units at a price of $96 per unit during the current year. Its income statement for the current year is as follows: Sales $10,368,000 Cost of goods sold 5,120,000 Gross profit $5,248,000 Expenses: Selling expenses $2,560,000 Administrative expenses 2,560,000 Total expenses 5,120,000 Income from operations $128,000 The division of costs between fixed and variable is as follows: Variable Fixed 70% 30% Cost of goods sold Selling expenses 75% 25% Administrative expenses 50% 50% Unit contribution margin $ 33.19 3. Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number. 104,128 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 number. units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $ 128,000 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. 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 108,000 units at a price of $96 per unit during the current year. Its income statement for the current year is as follows: Sales $10,368,000 Cost of goods sold 5,120,000 Gross profit $5,248,000 Expenses: Selling expenses $2,560,000 Administrative expenses 2,560,000 Total expenses 5,120,000 Income from operations $128,000 The division of costs between fixed and variable is as follows: Variable Fixed 70% 30% Cost of goods sold Selling expenses 75% 25% Administrative expenses 50% 50%