CengageNOWv2| Online teachin x b Success Confirmation of Questio x +A v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false* D 9 :M GmailOYouTube MapsBlackboardHW #9 - Chpt 21O eBookеВookShow Me HowE Print ItemBreak-Even Sales Under Present and Proposed ConditionsDarby Company, operating at full capacity, sold 154,100 units at a price of $51 per unit during the current year. Its income statement is as follows:Sales$7,859,100Cost of goods sold2,788,000Gross profit$5,071,100Expenses:Selling expenses$1,394,000Administrative expenses833,000Total expenses2,227,000Income from operations$2,844,100The division of costs between variable and fixed is as follows:>VariableFixedCost of goods sold60%40%Selling expenses50%50%Administrative30%70%expensesManagement is considering a plant expansion program for the following year that will permit an increase of $714,000 in yearly sales. The expansion will increase fixed costs by $95,200, but will notaffect the relationship between sales and variable costs.Required:Check My WorkPrevious59°F8:08 PMWA O ENGPartly sunny4/22/2022 CengageNOWv2| Online teachin x b Success Confirmation of Questio x +A v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false* D 9 :M GmailOYouTube MapsBlackboardHW #9 - Chpt 21eBookShow Me HowE Print ItemRequired:1. Determine the total variable costs and the total fixed costs for the current year.Total variable costsTotal fixed costs2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.Unit variable costUnit contribution margin3. Compute the break-even sales (units) for the current year.units4. Compute the break-even sales (units) under the proposed program for the following year.>units5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $2,844,100 of income from operations that was earned in the current year.units6. Determine the maximum income from operations possible with the expanded plant.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?Income8. Based on the data given, would you recommend accepting the proposal?- In favor of the pronocal hocaurn of the roduction in hroak ovon nnintCheck My WorkPrevious59°F8:08 PMWA O ENGPartly sunny4/22/2022

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Darby Company, operating at full capacity, sold 154,100 units at a price of $51 per unit during the current year. Its income statement is as follows: Sales $7,859,100 Cost of goods sold 2,788,000 Gross profit $5,071,100 Expenses: Selling expenses $1,394,000 Administrative expenses 833,000 Total expenses 2,227,000 Income from operations $2,844,100 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 50% 50% Administrative 30% 70% expenses Management is considering a plant expansion program for the following year that will permit an increase of $714,000 in yearly sales. The expansion will increase fixed costs by $95,200, but will not affect the relationship between sales and variable costs.