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 112,050 units at a price of $45 per unit during the current year. Its income statement for the current year is as follows Sales Cost of goods sold $5,042,250 2,490,000 $2,552,250 Gross profit Expenses Selling expenses $1,245,000 Administrative expenses 1,245,000 Total expenses 2,490,000 Income from operations 62,250 The division of costs between fixed and variable is as follows Variable Fixed Cost of goods sold Selling expenses Administrative expenses Management is considering a plant expansion program that will permit an increase of $405,000 in yearly sales. The expansion will Increase fixed costs by 70% 75% 50% 30% 25% 50% 40,500, but will not affect the relationship between sales and variable costs
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