The company is considering a purchase of equipment that would reduce its direct labor costs by $122,720 and would change its manufacturing overhead costs to 30% variable and 70% fixed (assume total manufacturing overhead cost is $413,000, as above). It is also considering switching to a pure commission basis for its sales staff. This would change selling expenses to 90% variable and 10% fixed (assume total selling expense is $295,000, as above). Compute (1) the contribution margin and (2) the contribution margin ratio, and recompute (3) the break-even point in sales dollars. (Round contribution margin ratio to 2 decimal places, eg. 0.55 and all other answers to 0 decimal places, es. 2,520. Use the current year numbers for calculations.) 1. Contribution margin 2. Contribution margin ratio 3. Break even point Carla Vista Corporation has collected the following information after its first year of sales. Sales were $1,770,000 on 118,000 units: selling expenses $295.000 (40\%6 variable and 60% fixed); direct materials $602,980; direct labor $342,200; administrative expenses $318,600 (20\% variable and 80% froed); and manufacturing overhead $413,000 (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