Question - Marotta Corporation has collected the following information after its first year of sales. Net sales were $1,800,000 on 100,000 units; selling expenses $243,000 (40% variable and 60% fixed); direct materials $512,800; direct labor $338,190; administrative expenses $282,600 (20% variable and 80% fixed); manufacturing overhead $364,700 (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.

Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year.