Carla Vista Corporation has collected the following information after its first year of sales. Sales were $$1,440,000$ on $96,000$ units;

selling expenses $$240,000(40\%$ variable and $60\%$ fixed$)$; direct materials $$490,560$; direct labor $$278,400$; administrative expenses

$$259,200(20\%$ variable and $80\%$ fixed$)$; and manufacturing overhead $$336,000(70\%$ variable and $30\%$ fixed$).$ Top management has

asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by $10\%$ next

year.

$($a$)$

Compute $(1)$ the contribution margin for the current year and the projected year, and $(2)$ the fixed costs for the current year.

$($Assume that fixed costs will remain the same in the projected year.$)$

$(1)$ Contribution margin for current year $

Contribution margin for projected year $

$(2)$ Fixed costs for current year