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Please help me with 3, 4, 5, 6, 7
Break-Even Sales Under Present and Proposed Conditions: Darby Company, operating at full capacity, sold 112,050 units at a price of $54 per unit during the current year. Its income statement for the current year is as follows:
Required:
1. Determine the total variable costs and the for the current year. Enter the final answers rounded to the nearest dollar.
Total variable costs $3,959,100
Total fixed costs $2,016,900
2. Determine (a) the unit variable cost and (b) the for the current year. Enter the final answers rounded to two decimal places.
Unit variable cost $35.33
Unit contribution margin $18.67
3. Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number.
____________ units
4. Compute the break-even sales (units) under the proposed program for the following year. Enter the final answers rounded to the nearest whole number.
_____________units
5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $74,700 of income from operations that was earned in the current year. Enter the final answers rounded to the nearest whole number.
_____________units
6. Determine the maximum income from operations possible with the expanded plant. Enter the final answer rounded to the nearest dollar.
$_________
7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year? Enter the final answer rounded to the nearest dollar.
$_________ Income
8. Based on the data given, would you recommend accepting the proposal?
Choose the correct answer.
b
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