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 93,150 units at a price of $63 per unit during the current year. Its income statement for the current year is as follows: Sales $5,868,450 Cost of goods sold 2,898,000 Gross profit $2,970,450 Expenses: Selling expenses $1,449,000 Administrative expenses 1,449,000 Total expenses 2,898,000 Income from operations $72,450 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 $441,000 in yearly sales. The expansion will increase fixed costs by $44,100, 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 $1 Total fixed costs $1

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 93,150 units at a price of $63 per unit during the current year. Its income statement for the current year is as follows: Sales $5,868,450 Cost of goods sold 2,898,000 Gross profit $2,970,450 Expenses: Selling expenses $1,449,000 Administrative expenses 1,449,000 Total expenses 2,898,000 Income from operations $72,450 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 $441,000 in yearly sales. The expansion will increase fixed costs by $44,100, 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 $1 Total fixed costs $1

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2PA: Break-even sales under present and proposed conditions Portmann Company, operating at full capacity,...

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