TASK 9 - Cost Volume Profit Analysis (CVP) Poleski Manufacturing, which maintains the same level of inventory at the end of each year, provided the following information about expenses anticipated for next year: Data Variable Fixed Expenses (per Expenses unit sold) Production costs: Direct materials $2.30 Direct Labour $4.70 Factory overhead $225,000 $3.00 Selling expenses: Sales salaries and commissions $97,00 $0.75 Advertising $47,500 Miscellaneous selling expense $16,200 General expenses: Office salaries $92,000 Supplies $12,300 $0.25 Miscellaneous general expense $15,000 $505,000 $11.00 The selling price of Poleski's single product is $16. In recent years, profits have fallen and Poleski's management is now considering a number of alternatives. Poleski wants to have a net income next year of $250,000, but expects to sell only 120,000 units unless some changes are made. Required: The president of Poleski has asked you to calculate the following: 1. The company's projected net income (assuming 120,000 units are sold) 2. The sales needed to achieve the company's net income objective for next year. 3. Contribution margin per unit 4. Contribution margin ratio 5. Break-even point for next year