Viejol Corporation has collected the following information after its first year of sales. Sales were $2,000,000 on 100,000 units, selling expenses $250,000 (40% variable and 60% fixed), direct materials $500,000, direct labor $581,000, administrative expenses $272,000 (20% variable and 80% fixed), and manufacturing overhead $378,000 (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.

ol Corporation has collected the following information after its first year of sales. Sales were?2,000,000 on 100,000 units, selling expenses $250,000 40% variable and 60% fixed direct materials $500,000 direct labor S581 administrative expenses $272,000 209 variable and 80% fixed and manufacturing overhead $378,000 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 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 fixed costs will remain the same in the projected year.) (1) Contribution margin for current year 500000 Contribution margin for projected year 55000 (2) Fixed Costs 8 1000 SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 3 of 3 used ? (b) Your answer is correct Compute the break-even point in units and sales dolars for the current year. (Round intermediate calculations to 2 decimal places e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.) Break-even point in units Break-even point in dollars 96200 units 1924000 SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 3 used