Problem 6-2A (Video) Lorge Corporation has collected the following information after its first year of sales. Sales were $1,700,000 on 85,000 units: selling expenses $250 000 40% variable and 60% fixed direct materials $710,600; direct labor S270,000; administrative expenses S 270,000 (20% variable and 80% fixed); and manufacturing overhead S022 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. 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 years Contribution margin for projected years (2) Fixed costs for current year Compute the break-even point in units and sales doliars for the first year. (Round contribution margia ratio to 1 decimal place e.g. a.s 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 $180,000. What is the required sales in dollars for the company to meet its target? Sales dollans required for target net income