Lorge Corporation has collected he following information after its first year o sales. Sales were $ 1 600,000 on 80 000 units; selling expenses S250.000 40% variable and 60% fixed : direct materials $620 800 direct labor $270000:3dm n strative expenses $270 00 2 % variable and 80% fixed: and manufacturing owerhead 336 00 70% ariable and 30 ed Top management has asked you to do a p analysis so that it can make plans for the coming year. It has pro ected that unit sales will crease by 10% next ye Compute (1) the contribution margin for the current year and the projccted year, and 12) the fixed costs for the current ycar Assume that fixcd costs will remain the same in the projccted year.) (1) Contribution margin for current year$ S Contributionmargin for projected year (2) Fixed costs for current year eTextbook and Media Compute the break even point in units and salcs dollars for the first ycar. (Round contribution margin ratio to 2 decimal places eg, 015 and final answers to 0 decimal places, eg. 2,510) Break-even point units Break-even point eTextbook and Media The companyas a target net incomeof $190,000 What is the required sales in dollars for the company to meet its target? Sales dollars required for target net income If the company meets its target ret 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, eg. 10.5) Margin uf safety ratic eTextbook and Media the company is consider ng a purchase o equipment that would reduce its direct labor costs by $110 00 and would change its manufacturing overhead costs to 30% var able and / 6 xed assume total manufacturing overhead cost is $336,000, as above it s also considering switching to a pure commission basis or its sales sta This would change selling expenses to 90% variable and 1 % fixed assume total selling expenses $250 0 as above Compute 1 he contribution margin and 2) the contribution margin ratio, andrecompute (3 the break-even point in sales dollars. (Round contribution margin ratio to 2 decimal places, eg. 25.25 and all other answers to O decimal places, eg. 2,520. Use the current year numbers for calculations) 1. Contribution margin 2 Contribution margin ratio 3. Break even point