Question: Please help me solve questions 4, 6 & 7. Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and
Please help me solve questions 4, 6 & 7.

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 109,350 units at a price of $63 per unit during the current year. Its income statement for the current year is as follows: $6,889,050 Cost of goods sold 3,402,000 Sales Gross profit $3,487,050 Expenses: Selling expenses $1,701,000 Administrative expenses 1,701,000 Total expenses 3,402,000 Income from operations $85,050 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 $567,000 in yearly sales. The expansion will increase fixed costs by $56,700, but will not affect the relationship between sales and variable costs. 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 $85,050 of income from operations that was earned in the current year. Enter the fina rounded to the nearest whole number. 111,942 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. $
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