Problem 5-5A Viejol Corporation has collected the following information after its first year of sales. Sales were $2,000,000 on 100,000 units, selling expenses $230,000 (40% variable and 60% fixed), direct materials $490,000, direct labor $611,800, administrative expenses $278,000 (20% variable and 80% fixed), and manufacturing overhead $358,000 (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. Correct answer. 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 year.) (1) Contribution margin for current year $Entry field with correct answer 500000 Contribution margin for projected year $Entry field with correct answer 550000 (2) Fixed Costs $Entry field with correct answer 467800 SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Correct answer. Your answer is correct. 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.) Break-even point in units Entry field with correct answer 93560 units Break-even point in dollars $Entry field with correct answer 1871200 SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. The company has a target net income of $206,000. 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 $Entry field with incorrect answer LINK TO TEXT LINK TO TEXT LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. 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 Entry field with incorrect answer now contains modified data %