Determine the amount of sales (units) that would be necessaryunder Break-Even Sales Under Present and Proposed Conditions DarbyCompany, operating at full capacity, sold 74,250 units at a priceof $126 per unit during the current year. Its income statement forthe current year is as follows: Sales $9,355,500 Cost of goods sold4,620,000 Gross profit $4,735,500 Expenses: Selling expenses$2,310,000 Administrative expenses 2,310,000 Total expenses4,620,000 Income from operations $115,500 The division of costsbetween fixed and variable is as follows: Variable Fixed Cost ofgoods sold 70% 30% Selling expenses 75% 25% Administrative expenses50% 50% Management is considering a plant expansion program thatwill permit an increase of $756,000 in yearly sales. The expansionwill increase fixed costs by $75,600, but will not affect therelationship between sales 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 $ 43.56 Total fixed costs $ 43.56 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 $ 43.56 Unit contribution margin$ 3. Compute the break-even sales (units) for the current year.Enter the final answers rounded to the nearest whole number. units4. Compute the break-even sales (units) under the proposed programfor the following year. Enter the final answers rounded to thenearest whole number. units 5. Determine the amount of sales(units) that would be necessary under the proposed program torealize the $115,500 of income from operations that was earned inthe current year. Enter the final answers rounded to the nearestwhole number. units 6. Determine the maximum income from operationspossible with the expanded plant. Enter the final answer rounded tothe nearest dollar. $ 7. If the proposal is accepted and salesremain at the current level, what will the income or loss fromoperations be for the following year? Enter the final answerrounded to the nearest dollar. $ Income 8. Based on the data given,would you recommend accepting the proposal? In favor of theproposal because of the reduction in break-even point. In favor ofthe proposal because of the possibility of increasing income fromoperations. In favor of the proposal because of the increase inbreak-even point. Reject the proposal because if future salesremain at the current level, the income from operations willincrease. Reject the proposal because the sales necessary tomaintain the current income from operations would be below thecurrent year sales.