The company is considering a purchase of equipment that would reduce its direct labor costs by $99,840 and would change its manufacturing overhead costs to 30% variable and 70% fixed (assume total manufacturing overhead cost is $336,000, as above). It is also considering switching to a pure commission basis for its sales staff. This would change selfing expenses to 90% variable and 10% fixed (assume total selling expense is $240,000, 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, e.g. 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 $1,440,000 on 96,000 units: selling expenses $240,000 (40\% variable and 60% fixed); direct materials $490,560; direct labor $278,400; administrative expenses $259,200 (20\% variable and 80% fixed); and manufacturing overhead $336,000(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