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Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present...

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Accounting

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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 124,200 units at a price of $132 per unit during the current year. Its Income statement for the current year is as follows: Sales $16,394,400 Cost of goods sold 8,096,000 Gross profit $8,298,400 Expenses: Selling expenses $4,048,000 Administrative expenses 4,048,000 Total expenses Income from operations 8,096,000 $202,400 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative 50% 50% expenses Management is considering a plant expansion program that will permit an increase of $1,320,000 in yearly sales. The expansion will increase fixed costs by $132,000, 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 Total fixed costs Check My Work

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