Crane Corporation has collected the following information after its first year of sales. Sales were $1,600,000 on 100,00

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Crane Corporation has collected the following informationafter its first year of sales. Sales were$1,600,000 on 100,000 units, selling expenses$220,000 (40% variable and 60% fixed), direct materials$504,000, direct labor $306,000, administrative expenses$278,000 (20% variable and 80% fixed), and manufacturingoverhead $352,000 (70% variable and 30% fixed). Top managementhas asked you to do a CVP analysis so that it can make plans forthe coming year. It has projected that unit sales will increase by10% next year.
1. compute contribution margin for the current year andprojected year, and compute the fixed costs for the current year. (assuming fixed costs will remain the same in the projectedyear.
2. compute the break-even point in units and sales dollars forthe current year
3. the company has a target income of200,000. What is requiredsales in dollars for the company to meet its target?
4. if the company meets its target income number, by whatpercentage could its sales fall before it is operating at a loss.What is the margin of safety ratio?