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Sandhill Corporation has collected the following information after its first year of operations. Sales were $$1,300,000$ on $130,000$ units,

selling expenses $$200,000(40\%$ variable and $60\%$ fixed$),$ direct materials $$496,000,$ direct labor $$92,200,$ administrative expenses

$$274,000(20\%$ variable and $80\%$ fixed$),$ and manufacturing overhead $$360,000(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$)$

Your answer is incorrect.

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

the projected year. Unit selling price, unit variable costs, and fixed costs are estimated to remain unchanged.

$(1)$

$(2)$ Total fixed costs

$