Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions

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 $54 per unit during the current year. Its income statement for the current year is as follows:
Sales
$5,175,900
Cost of goods sold
2,556,000
Gross profit
$2,619,900
Expenses:
Selling expenses
$1,278,000
Administrative expenses
1,278,000
Total expenses
2,556,000
Income from operations
$63,900
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 $432,000 in yearly sales. The expansion will increase fixed costs by $43,200, 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
$
3,386,700
Total fixed costs
1,725,300

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