Darby Company, operating at full capacity, sold 83,700 units at a price of $48 per unit during the current year. Its income statement for the current year is as follows: Sales $4,017,600 Cost of goods sold 1,984,000 Gross profit $2,033,600 Expenses: Selling expenses $992,000 Administrative expenses 992,000 Total expenses 1,984,000 Income from operations $49,600 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $336,000 in yearly sales. The expansion will increase fixed costs by $33,600, but will not affect the relationship between sales and variable costs. What is the total variable costs and the total fixed costs for the current year. Answers rounded to the nearest dollar. Total variable costs $ Total fixed costs $
Darby Company, operating at full capacity, sold 83,700 units at a price of $48 per unit during the current year. Its income statement for the current year is as follows:
|
Sales |
|
|
$4,017,600 |
|
Cost of goods sold |
|
|
1,984,000 |
|
Gross profit |
|
|
$2,033,600 |
|
Expenses: |
|
|
|
|
Selling expenses |
$992,000 |
|
|
|
Administrative expenses |
992,000 |
|
|
|
Total expenses |
|
|
1,984,000 |
|
Income from operations |
|
|
$49,600 |
The division of costs between fixed and variable is as follows:
|
|
Variable |
Fixed |
||
|
Cost of goods sold |
70% |
|
30% |
|
|
Selling expenses |
75% |
|
25% |
|
|
Administrative expenses |
50% |
|
50% |
|
Management is considering a plant expansion program that will permit an increase of $336,000 in yearly sales. The expansion will increase fixed costs by $33,600, but will not affect the relationship between sales and variable costs.
What is the total variable costs and the total fixed costs for the current year. Answers rounded to the nearest dollar.
|
Total variable costs |
$ |
|
Total fixed costs |
$ |
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