PLEASE NOTE: This question was previously answered by another, however answers 3 - 5 were incorrect. :(

Please keep answers 1 - 7 in the same formats as below for ease of understanding, thank you!

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 90,450 units at a price of $99 per unit during the current year. Its income statement for the current year is as follows:

Sales			$8,954,550
Cost of goods sold			4,422,000
Gross profit			$4,532,550
Expenses:
Selling expenses	$2,211,000
Administrative expenses	2,211,000
Total expenses			4,422,000
Income from operations			$110,550

The division of costs between fixed and variable is as follows:

	Variable		Fixed
Cost of goods sold	70%		30%
Selling expenses	75%		25%
Administrative expenses	50%		50%

Management is considering a plant expansion program that will permit an increase of $792,000 in yearly sales. The expansion will increase fixed costs by $79,200, but will not affect the relationship between sales and variable costs.

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	(fill in the blank)
Total fixed costs	(fill in the blank)

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	(fill in the blank)
Unit contribution margin	(fill in the blank)

3. Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number.

(fill in the blank)

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.

(fill in the blank)

5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $110,550 of income from operations that was earned in the current year. Enter the final answers rounded to the nearest whole number.

(fill in the blank)

6. Determine the maximum income from operations possible with the expanded plant. Enter the final answer rounded to the nearest dollar.

(fill in the blank)

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.

(fill in the blank)