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 95,850 units at a price of $99 per unit during the current year. Its income statement for the current year is as follows:

Sales  $9,489,150Cost of goods sold  4,686,000Gross profit  $4,803,150Expenses:   Selling expenses$2,343,000  Administrative expenses2,343,000  Total expenses  4,686,000Income from operations  $117,150

The division of costs between fixed and variable is as follows:

 VariableFixedCost of goods sold70% 30% Selling expenses75% 25% Administrative expenses50% 50% 

Management is considering a plant expansion program that will permit an increase of $792,000 in yearly sales. The expansion will increase fixed costs by $79,200, 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

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