estion 2 of 4 pe -2.5 Policies rent Attempt in Progress orge Corporation has collected the following information after its hrst year of sales Sales were $1.575,000 on 105.000 units: elling expenses $250,000 (40% variable and 60% fixed) direct materiais $606 100: direct labor $250.000, administrative expenses 270.000 (20% variable and 80% fixed): and manufacturing overhead $357.000 (7086 variable and 30% fixed). Top management has sked 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. Year (2) the fixed costs for the current year. Compute (1) the contribution margin for the current year and the proje (Assume that fixed costs will remain the same in the projected year.) (1) Contribution margin for current year S Contribution margin for projected year (2) Fixed costs for current year e Textbook and Media 05 stion Part Score Compute the break-even point in units and sales dollars for the first year. (Round contribution margin ratio to 1 decimal pe 15 and final answers to decimal places es 2.510.) units Break-even point Break-even point $ eTextbook and Media Question Part Score The company has a target net income of $190.000. What is the required sales in dollars for the company to meet its target? Sales dollars required for target net income e Textbook and Media Question Part Score If the company meets its target net income number, by what percentage could its sales fall before it is operating at a loss? That is, what is its margin of safety ratio? (Round answer to 1 decimal place, s. 10.5%) Margin of safety ratio e Textbook and Media Question Part Score SAMSUNG Question Part Score --10.5 The company is considering a purchase of equipment that would reduce its direct labor costs by $110,000 and would change its manufacturing overhead costs to 30% variable and 705: fixed (assume total manufacturing overhead cost is $357,000, as above). It is also considering switching to a pure commission basis for its sales staff. This would change selling expenses to 90% variable and 10% fixed (assume total selling expense is $250.000, as above). Compute (1) the contribution margin and (2) the contribution margin ratio, and recompute (39the break-even point in sales dollars. (Round contribution margin ratio to 4 decimal places, eg. 02527 and all other answers to decimal places 32.520. Use the current year numbers for calculations) Contribution margin 2. Contribution margin ratio 3. Break-even point eTextbook and Media Attempts of used Question Part Score Sawowe SAMSUNG