INSTRUCTIONS: JUST ANSWER D$.)$ PLEASE.... Wildhorse Corporation has collected the following information after its first year of sales. Sales were $$1,600,000$ on $100,000$ units,

selling expenses $$240,000(40\%$ variable and $60\%$ fixed$),$ direct materials $$514,000,$ direct labor $$270,400,$ administrative expenses

$$282,000(20\%$ variable and $80\%$ fixed$),$ and manufacturing overhead $$376,000(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 correct.

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

Your answer is correct.

Compute the break$-$even point in units and sales dollars for the current year.

Break$-$even point in units

units

Break$-$even point in dollars

$($c$)$

Your answer is correct.

The company has a target net income of $$216,000.$ What is the required sales in dollars for the company to meet its target?

Sales dollars required for target net income

$($d$)$

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, e$.$g$.10\mathrm{.}5.)$