Problem 6 ?^ orge Corporation has collected the following information after its
ID: 2409605 • Letter: P
Question
Problem 6 ?^ orge Corporation has collected the following information after its first year of sales. Sales were $2,250,0co make plans nor coming year. It has projected that unit sales will increase by 10% next year 00; adrinstrative expenses S 270,000 (20% variatie 80% nxed); and manufacturing overhead S37a (40% variable and 60% rued); direct materials $1,131.400; diet 378,000 (70% variable and 30% fixed). Top management has asked you to do a op analysis so that " Compute (1) the contribution margin for the current year ahd the proyected year, and (2) the fixed (1) Contrbution margin for current years costs for the current year. (Assume that foxed costs will remain the same in the projected year.) Contribution margin for projected year (2) Fixed costs for current year Compute the break even point in units and sales dollars for the first year,(Round costribution margin ratio to 2 Break even poine Break even po places e.g. o.15 and final answers to o decimal places e.g. as10) The compuny hes a target net income of $190,000 What s the requaired sales in dolars for the company to meet its target Sales doars required for target net incomeExplanation / Answer
1.
2.
Working:
Working:
3.
Working:
4.
Working:
Current year contribution margin ($) 450000