Determine the amount of sales (units) that would be necessaryunder

Break-Even Sales UnderPresent and Proposed Conditions

Darby Company,operating at full capacity, sold 118,800 units at a price of $117per unit during the current year. Its income statement for thecurrent year is as follows:

Sales			$13,899,600
Cost of goods sold			6,864,000
Gross profit			$7,035,600
Expenses:
Sellingexpenses	$3,432,000
Administrativeexpenses	3,432,000
Total expenses			6,864,000
Income from operations			$171,600

The division of costsbetween fixed and variable is as follows:

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

Management isconsidering a plant expansion program that will permit an increaseof $1,287,000 in yearly sales. The expansion will increase fixedcosts by $128,700, but will not affect the relationship betweensales and variable costs.

Required:

1.Determine the total variable costs and the total fixed costs forthe current year. Enter the final answers rounded to the nearestdollar.

Total variable costs	$
Total fixed costs	$

2.Determine (a) the unit variable cost and (b) the unit contributionmargin for the current year. Enter the final answers rounded to twodecimal places.

Unit variable cost	$
Unit contribution margin	$

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

4.Compute the break-even sales (units) under the proposed program forthe following year. Enter the final answers rounded to the nearestwhole number.
units

5.Determine the amount of sales (units) that would be necessary underthe proposed program to realize the $171,600 of income fromoperations that was earned in the current year. Enter the finalanswers rounded to the nearest whole number.
units

6.Determine the maximum income from operations possible with theexpanded plant. Enter the final answer rounded to the nearestdollar.
$

7. Ifthe proposal is accepted and sales remain at the current level,what will the income or loss from operations be for the followingyear? Enter the final answer rounded to the nearest dollar.
$

Income

PLEASE HELP SOLVE QUESTIONS # 5, 6, 7