Question: Hello I need help with #6 and #7 Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed


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 91,800 units at a price of $57 per unit during the current year. Its income statement for the current year is as follows: $5,232,600 2,584,000 $2,648,600 Sales Cost of goods sold Gross profit Expenses: Selling expenses $1,292,000 Administrative expenses 1,292,000 Total expenses 2,584,000 Income from operations $64,600 The division of costs between fixed and variable is as follows: Variable Fixed 70% 30% 75% 25% Cost of goods sold Selling expenses Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $456,000 in yearly sales. The expansion will increase fixed costs by $45,600, but will not affect the relationship between sales and variable costs.
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