Wildhorse Corporation has collected the following information after its first year of operations. Sales were $1,600,000 on 100,000 units, selling expenses $240,000 (40% variable and 60% fixed), direct materials $514,000, direct labor $270,400, administrative expenses $282,000 (20% variable and 80% fixed), and manufacturing overhead $376,000 (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 and the projected year. Unit selling price, unit variable costs, and fixed costs are estimated to remain unchanged. (b) (1) Contribution margin for current year $ 400000 Contribution margin for projected year $ 440000 (2) Total fixed costs to 482400 eTextbook and Media Your answer is correct. Compute the break-even point in sales units and sales dollars for the current year. Break-even point 120600 units Break-even point in dollars $ 1929600 Attempts: 2 of 3 used (c) * Your answer is incorrect. The company has a target net income of $216,000. What is the required sales in dollars for the company to meet its target? Sales dollars required for target net income $ 2,720,800 eTextbook and Media Save for Later Attempts: 1 of 3 used Submit