Sheridan Corporation has collected the following information after its first year of operations. 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.

Compute $(1)$ the contribution margin for the current year and the projected year, and $(2)$ the fixed costs for the current year and

the projected year. Unit selling price, unit variable costs, and fixed costs are estimated to remain unchanged.

$(1)$ Contribution margin for current year

$

Contribution margin for projected year

$(2)$ Total fixed costs

$

Compute the break$-$even point in sales units and sales dollars for the current year.

Break$-$even point

units

Break$-$even point in dollars

$

eTextbook and Media

The company has a target net income of $$206,000.$ What is the required sales in dollars for the company to meet its target?

Sales dollars required for target net income s

eTextbook and Media

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$.$s$.10\mathrm{.}5.)$