Problem 20-2A Lorge Corporation has collected the following information after its first year of sales. Sales were $900,000 on 90,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $76,100; direct labor $240,000; administrative expenses $270,000 (20% variable and 80% fixed); and manufacturing overhead $357,000 70 % variable and 30 fixed Top management has asked you to do a C ana s s so that it can make an s for e ing a t as projected tur sale 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.) and (2) the fixed costs for the current year (Assume that (1) Contribution margin for current year Contribution margin for projected years (2) Fixed costs for current year Compute the break-even point in units and sales dollars for the first year. (Round contribution margin ratio to 2 decimal places e.g. 0.15 and final answers to o decimal places, e.g. 2,510.) Break-even point Break-even point units The company has a target net income of $200,000. What is the required sales in dollars for the company to meet its target? Sales doillars required for target net income s