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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 $1,237,500. (Do not
2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,237,500. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Required information [The following information applies to the questions displayed below] Astro Company sold 22,500 units of its only product and reported income of $60,000 for the current year. During a planning session for next year's activities, the production manager notes that varlable costs can be reduced 45% by Installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $155,000. Total units sold and the selling price per unit will not change. 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimal places.) 3. Compute the sales level required in both doliars and units to earn $250,000 of target income for next year with the machine Installed. (Do not round intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio" to nearest whole percentage) \begin{tabular}{|l|l|l|} \hline Contribution Margin per unit & Proposed \\ \hline & & \\ \hline & $ & 0.00 \\ \hline \end{tabular} Contribution Margin Ratio \begin{tabular}{|c|c|c|c|} \hline Numerator: & Denominator: & Contribution Margin Ratio \\ \hline \end{tabular} Break-even point in dollar sales with new machine: \begin{tabular}{|l|l|l|l|} \hline Numerator: & Denominator: & = & Break-Even Point in Dollars \\ \hline & & & Break-even point in dollars \\ \hline \end{tabular}
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