# Mozena corporation has collected the following information after its

Mozena corporation has collected the following information after its first year of sales. Sales were \$1,500,000 on 100,000 units; selling expenses \$250,000 (30%variable;70% fixed); direct materials \$511,000; direct labor \$290,000; administrative expenses \$270,000 (15% variable); manufacturing overhead \$350,000 (65%variable).Top management has asked yo to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 25% next year

Mozena corporation has collected the following information after its first year of sales. Sales were \$1,500,000 on 100,000 units; selling expenses \$250,000 (30%variable;70% fixed); direct materials \$511,000; direct labor \$290,000; administrative expenses \$270,000 (15% variable); manufacturing overhead \$350,000 (65%variable).Top management has asked yo to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 25% next year

A. Compute the contribution margin for current and the next year.

B.compute fixed costs for the current year

C. compute break-even point for the current year in units and sales dollars

D. The company has a target net income of \$200,000. What is the required sales in dollars to meet the target.

E. If the company meet its target net income, by what percentage could its sales fall before it operating at a loss? That is, what is its margin of safety ratio.

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