Pharoah Corporation has collected the following information after its first year of sales. Sales were $1,350,000 on 90,000 units; selling expenses $225,000(40% variable and 60% fixed); direct materials $459,900; direct labor $261,000; administrative expenses $243,000(20% variable and 80% fixed); and manufacturing overhead $315,000(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 yeari) (1) Contribution margin for current year. Contributionmargin for projected year $ (2) Fixed costs for current year Compute the break-even point in sales units and sales dollars for the first year. (Round contribution margin ratio to 1 decimal place e. 0.5 and final answers to 0 decimal places, eg. 2.510.) Break-even point units Break-even point $ The company has a target net income of $180,000. 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 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 2 decimal ploces, eg. 10.5\%) Margin of safety ratio % eTextbook and Media Attempts: 0 of 4 used Using multiple attempts will impact your score. 205 score reduction after attempt 3