Lorge Corporation has collected the following information after its first year of sales. Sales were $2,396,800 on 149,800 units; selling expenses $359,520 (40% variable and 60% fixed); direct materials $765,478; direct labor $426,930; administrative expenses $419,440 (20% variable and 80% fixed); manufacturing overhead $539,280 (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. The company is considering a purchase of equipment that would reduce its direct labor costs by $155,792 and would change its manufacturing overhead costs to 30% variable and 70% fixed (assume total manufacturing overhead cost is $539,280, 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 $359,520, as above). Compute (1) the contribution margin and (2) the contribution margin ratio, and recompute (3) the break-even point in sales dollars. (Round contribution margin ratio to 0 decimal places, e.g. 25% and all other answers to 0 decimal places, e.g. 2,520.)

1. Contribution Margin:

2. Contribution Margin Ratio:

3. Break-even Point: