this is the third time i asked and both was wrong i gave feed back from instructor this time. still can not figure number six out . please help thanks in advance.

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 76,950 units at a price of $48 per unit during the current year. Its income statement for the current year is as follows:

Sales

$3,693,600

Cost of goods sold

1,824,000

Gross profit

$1,869,600

Expenses:

Selling expenses

$912,000

Administrative expenses

912,000

Total expenses

1,824,000

Income from operations

$45,600

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 $288,000 in yearly sales. The expansion will increase fixed costs by $28,800, but will not affect the relationship between sales andvariable costs.

Required:

1.Determine the total variable costs and thetotal fixed costsfor the current year. Enter the final answers rounded to the nearest dollar.

Total variable costs

$ 2416800

Total fixed costs

$ 1231200

2.Determine (a) the unit variable cost and (b) theunit contribution marginfor the current year. Enter the final answers rounded to two decimal places.

Unit variable cost

$31.41

Unit contribution margin

$16.59

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

74213 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.

75949 units

5.Determine the amount of sales (units) that would be necessary under the proposed program to realize the $45,600 of income from operations that was earned in the current year. Enter the final answers rounded to the nearest whole number.

78698 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.

$16800 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.

b.In favor of the proposal because of the possibility of increasing income from operations.

c.In favor of the proposal because of the increase in break-even point.

d.Reject the proposal because if future sales remain at the current level, the income from operations will increase.

e.Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales.

Choose the correct answer.

b

Feedback

1. Multiply the percentages for fixed and variable costs by each cost.

2. a. Divide the total variable costs by number of units.

2. b. Sales price per unit minus variable costs per unit equals contribution margin per unit.

3. Fixed costs divided by unit contribution margin equals break-even point.

4. Fixed costs under the proposed program divided by contribution margin equals new break-even point.

5. (Fixed costs + Target profit) divided by unit contribution margin equals sales units.

6. Determine the increase in units by dividing the sales increase by the price per unit. Add the additional revenue and additional fixed costs when calculating:

Sales minus fixed and variable costs equals income from operations.

7. Subtract the additional fixed costs from the operating income.

8. Consider the break-even point and the sales needed for the proposed level.

Learning Objective 2,Learning Objective 3

Feed back from instructor

The first part is correct ($ 3,693,600+$288,000).After that you run into problems.You need to subtract the fixed costs and the variable costs.The fixed are easy to find, since you calculated it in step 4:$1,231,200 + $28,800.The variable is a little more complicated.You need to take your increase in sales and divide by the capacity price and then add the number of units sold.Once you have that number, just multiply by the 31.41 you found in part two to find the variable cost.