Question: Module 4 Assignment eBook Show Me How Calculator Print Item Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present


Module 4 Assignment 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 75,600 units at a price of $123 per unit during the current year. Its income statement for the current year is as follows: Sales $9,298,800 4,592,000 Cost of goods sold Gross profit Expenses: $4,706,800 Selling expenses Administrative expenses $2,296,000 2,296,000 Total expenses 4,592,000 $114,800 Income from operations The division of costs between fixed and variable is as follows: Variable Fixed 70% 30% Cost of goods sold Selling expenses Administrative 75% 25% 50% 50% expenses Management is considering a plant expansion program that will permit an increase of $738,000 in yearly sales. The expansion will increase fixed costs by $73,800, but will not affect the relationship between sales and variable costs. Module 4 Assignment eBook Show Me How Calculator 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 number. units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $114,800 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
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