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Problem 18-5A (Part Level Submission) Viejol Corp ration has collected the following information after its first year of sales. Sales en S1.300 00 on 130
Problem 18-5A (Part Level Submission) Viejol Corp ration has collected the following information after its first year of sales. Sales en S1.300 00 on 130 00 units selling c e ses 21 00 0% variable and 60% ced ,direct mate alsS 9400direct labor 83 O admi ist tive expenses S282000 20% van ble and 80% fixed), and manufa n ng overhead S368 00 0% van ble and 30% xed Top management as a ke you to do a CVP anal s s so hal t can make plans r eo mung e r. as o e a ha unit sales will increase by 10% next year. 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.) (D Contribution margin for current year Contribution margin for projected year (2) Fixed Costs Compute the break-even point in units and sales dollars for the current year. (Round intermediate calculations to 2 decimal places e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.) units Break-even point in units Break-even point in dollars The company has a target net income of $212,000. What is the required sales in dollars for the company to meet its target? (Round answer to 0 decimal places, e.g. 1,225.) 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 1 decimal place, e.g. 10.5.) Margin of safety ratio
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