1). Contribution margin Particulars Current year Project year (10%...

1). Contribution margin

Particulars	Current year	Project year (10% increase)
Sale	2,000,000	2,200,000
Less: variable cost
Direct material	498,000	547,800
Direct labour	600,200	660,220
Selling expense (40%)	84,000	92,400
Administrative expense (20%)	56,000	61,600
Manufacturing overhead (70%)	261,800	287,980
Contribution margin	500,000	550,000
Contribution margin%	25%	25%

2). Fixed cost

Selling expense (60%)	126,000
Administrative expense (80%)	224,000
Manufacturing overhead (30%)	112,200
Total fixed cost	462,200

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{bl Compute the break—even point in units and sales dollars for the current year. Break-even point in u nits l 30813 u nits Break—even point in dollars 55 l 1400600 eTextbook and Media Save for Later Attempts: U of 3 used

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