Sheridan Corporation has collected the following information after its first year of sales. Sales were $1,710,000 on 114,000 units; selling expenses $285,000 (40% variable and 60% fixed): direct materials $582,540; direct labor $330,600; administrative expenses $307,800 (20% variable and 80% fixed); and manufacturing overhead $399,000 (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.

Sheridan Corporation has collected the following information after its first year of sales. Sales were $1,710,000 on 114,000 units. selling expenses $285,000 (40\% variable and 60% fixed): direct materials $582,540; direct labor $330,600; administrative expenses $307,800(20% variable and 80% foxed): and manufacturing overhead $399,000 (70\% variable and 30% fuced). Top management has asked you to do a CVP analysis so that it canmake plans for the coming year it has projected that unit sales will increase by 100 enext year. (a) 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 wiliremain the same in the projected year) (1) Contributionmargin for current year is Contribution marginfor projected year $ (2) Fored costs for currentyear