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Problem 18-SA (Part Level Submission) Viejol Corporation has collected the following information after its first year of sales. Sales were $2,000,000 on 100,000 units, selling

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Problem 18-SA (Part Level Submission) Viejol Corporation has collected the following information after its first year of sales. Sales were $2,000,000 on 100,000 units, selling expenses $230,000 (40% variable and 60% fixed), direct materials $490,000, direct labor $611,800, administrative expenses $278.000 (204 variable and fixed and manufacturing overhead $358,000 (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. (a) Your answer is correct. Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fred costs will remain the same in the projected year.) (1) Contribution margin for current year 500000 Contribution margin for projected year. 550000 467800 (2) Fixed Costs Click if you would like to show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER IN THE LINK TO TEXT LINK TO TEXT CALCULATOR PRINTER VERSION BACK NEXT (b) Your answer is correct. Compute the break-even point in units and sales dollars for the current year. (Round Intermediate calculations to 2 decimal places e.g. 2.25 and final answers to O decimal places, e.g. 1,225.) Break-even point in units 93560 units Break-even point in dollars 1871200 Click if you would like to show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 2 of 3 used CALCULATOR PRINTER VERSION Attempts: 2 of 3 used BACK (c) Your answer is correct. The company has a target net income of $206,000. What is the required sales in dollars for the company to meet its target? (Round answer to o decimal places, es 1,225.) Sales dollars required for target net income. 2695200 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 3 used (d) x Your answer is incorrect. Try again. Attempts: 1 of 3 used - (0) Your answer is incorrect. Try again. the company meets its target net income number, by what percentage could its sales fall before it is operating at a loss? That is what is its margin of safety ratio Round answer to 1 decimal place, e.g. 10.5.) largin of safety ratio 44.00 % Slick if you would like to show Work for this question: Open Show Work

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