21,6

there is five parts to this one problem

Chec Required Information Problem 21-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 {The following information applies to the questions displayed below.) Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (Ignoring taxes) for the current year, as shown here. During a planning session for year 2020's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must Increase its annual fixed costs by $200,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2019 Sales $1,000,000 Variable costs 800,000 Contribution margin 200,000 Fixed costo 250,000 Net loss S (50,000) Problem 21-4A Part 1 Required: 1. Compute the break-even point in dollar sales for 2019. 2. Compute the predicted break-even point in dollar sales for 2020 assuming the machine is installed and there is no change in the unit selling price. Contribution Margin Per Unit Proponed Contribution Margin Ratio Choose Numerator: Choose Denominator Contribution Margin Ratio Contribution margin ratio Break Even Point in Dollar Sales with New Machine Choose Numerator: Choose Denominatori Break Even Point in Dollars Break-even point in dollars 0 10 7 8 9 of 10 !!! Problem 21-4A Part 3 3. Prepare a forecasted contribution margin Income statement for 2020 that shows the expected results with the machine installed. Assume that the unit selling price and the number of units sold will not change, and no income taxes will be due. ASTRO COMPANY Forecasted Contribution Margin Income Statement For Yoar Ended December 31, 2020 Contribution margin $ 0 CD 9 10 Next > B of 10 Problem 21-4A Part 5 5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume no income taxes will be due. (Round your intermediate calculation and final answers to the nearest whole dollar) ASTRO COMPANY Porecasted Contribution Margin Income Statement For Year Ended December 31, 2020 $ Per Unit 50 Contribution margin 0 2. Compute the predicted break-even point in dollar sales for 2020 assuming the machine is installed and there is no change in the unit selling price. Contribution Margin Per Unit Proponed Contribution Margin Ratio Choose Numerator: Choose Denominator Contribution Margin Ratio Contribution margin ratio Break Even Point in Dollar Sales with New Machine Choose Numerator: Choose Denominatori Break Even Point in Dollars Break-even point in dollars 0 10 7 8 9 of 10 !!! Problem 21-4A Part 3 3. Prepare a forecasted contribution margin Income statement for 2020 that shows the expected results with the machine installed. Assume that the unit selling price and the number of units sold will not change, and no income taxes will be due. ASTRO COMPANY Forecasted Contribution Margin Income Statement For Yoar Ended December 31, 2020 Contribution margin $ 0 CD 9 10 Next > B of 10 Problem 21-4A Part 5 5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume no income taxes will be due. (Round your intermediate calculation and final answers to the nearest whole dollar) ASTRO COMPANY Porecasted Contribution Margin Income Statement For Year Ended December 31, 2020 $ Per Unit 50 Contribution margin 0