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2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,000,000. Note: Do
2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,000,000. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar. _ Contn'bution margin . ! Required information [The following information applies to the questions displayed below.] Astro Company sold 25,000 units of its only product and reported income of $117,600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 40% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $149,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($40 per unit) $ 1, 000, 000 Variable costs ($32 per unit) 800, 090 Contribution margin 200, 090 Fixed costs 82, 400 Income $ 117, 600 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. Note: Round your answers to 2 decimal places. Contribution margin Per unit Contribution Margin Ratio Numerator: Denominator: = Contribution Margin Ratio = Contribution margin ratio Break-even point in dollar sales with new machine: Numerator: Denominator: = Break-Even Point in Dollars = Break-even point in dollars
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