Smith Corporation has collected the following information after its first year of sales. Net sales were $1,600,000 on 100,000 units, selling expenses were $230,000 (40% variable and 60% fixed), direct materials were $508,000, direct labor was $280,000, administrative expenses were $270,000 (20% variable and 80% fixed), and manufacturing overhead was $380,000 (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. Management has projected that unit sales will increase by 10% next year. Assume no change in the price of the units. Required: Calculate the contribution margin for the current year and the projected year, and the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year.) Calculate the break-even point in units and sales dollars for the first year. If the company has a target operating income of $312,000, calculate the required sales amount in dollars for the company to meet its target. Assuming the company meets its target operating income number, calculate by what percentage its sales could fall before the company operates at a loss. That is, what is its margin of safety ratio