Ivanhoe Corporation has collected the follawing information after its first year af sales. Sales were $1,290,000 cn 86,000 units; selling expenses $215,000 (40\% variable and 60%6 fuved); direct materials $439,460; direct labor $249,400; administrative expenses $232,200 (20\% variable and 80% fixed]; and manufacturing coerhead $301,000 (70\% variable and 20% fooed). 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 108 next year. (a) Your answer is correct. Compute (1) the contribution margin far 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 far current year \$ $ Contribution margin for projected year $ (2) Fooed costs for current year (b) Your answer is correct. Compute the break-even point in sales units and sales dollars for the first year. (Round contribution margin ratio to 1 decimai place e. 0.5 and final answers to 0 decimal places, e.g. 2.510.) Break-even paint units Break-even paint $ (c) Your answer is correct. The company has a target net income of $172,000. What is the required sales in dollars for the company to meet its target? Sales dollars required for target net income $ eTextbook and Media Attempts: unlimited (d) Your answer is correct. 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 ratia? (Round answer to 2 decimal ploces, eg. 10.5%.) Margin of safety ratio % eTextbook and Media (e) The company is considering a purchase of equipment that would reduce its direct labor costs by $89,440 and would change its manufacturing overhead costs to 30% variable and 70% fixed (assume total manufacturing overhead cast is $201,000, as abovel. It is also considering switching to a pure commission basis for its sales staft This would change sel ling experses to 90% variable and 10% fixed (assume tatal sell ing expense is $215,000,as above). Compute (1) the contribution margin and (2) the contribution margin ratia, and recompute (3) the break-even point in sales dollars. (Round contribution margin ratio to 2 decimal places, es. 0.55 and al other answers to 0 decimal places, es. 2,520. Use the current year numbers for colculations.J