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Determine the amount of sales that we are Break Even sales under present and proposed condtions Darby Company operating capacity, sold 9.550 units at a price of 531 per the more 37.902.350 Cost of 3,042,000 Cross pro 14.00 $1.971.000 Administrative expenses 71.000 3,042.000 Income from operations 9.550 The division of costs between and was as follow Variable Fixed Cost of goods sold 70% 30 Sellingen 25 Administrative expenses 50 Son Management is considering plant expansion program that will perkare of 1729.000 in very sales. The increased by the end Required: 1. Determine the total variable costs and the total sed cons for the current year. Enter the final rounded to the nearest Total variable costs Total wed costs 2. Determine (a) the unit variable cost and the contribution marge for the current year. Enter the founded to two decimal Unit variable cost Unit contribution margin 3. Compute the break even sales unit) for the current Enter the finalwers rounded to the nearest whole Comote the stand the fact that the pens Required ant variable units units 5. Determine the amount of sales (unit) that would be necessary under the pred program to rate of income from prations that was earned in the center the rounded to 6. Determine the maximum income from operations pouble with the expanded at the the final rounded to the nearesto 7. If the proposal is accepted and remain at the current love what will the come or less from cortions et for the following year to the final rounded to the nearest de . Based on the data w you recomand accepting the pro a. In favor of the rol because of the reduction in break-even point b. In favor of the procese of the post of increasing income from ons c. In favor of the proposal because of the increase in break even point d. Reject the proposal because Iture sales remain at the current level, the income from period will be e. Reject the proposal because the sales necessary to maintain the current income from period bebe the current years Choose the correct

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