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357 Astro Company sold 23.000 units of its only product and reported income of $264,600 for the current year. During a planning session for
357 Astro Company sold 23.000 units of its only product and reported income of $264,600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 44% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $156,000 Total units sold and the selling price per unit will not change ASTRO COMPANY Contribution margin Income Statement For Year Ended December 31 Sales (856 per uniti Variable costs 1535 per unat Contribution margin Fixed costs Incone 1264.600 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimal places.) Contribution Margin per Proposed Contbution Margin Ratio Conation Maginatio Combution marginato Break-Even Paint in Dollars Break even point datan 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,288.000 (Do not round intermediate calculations. Round your answers to the nearest whole dollar ASTRO COMPANY Contribution Margin become Statement Contribution margin 3. Compute the sales level required in both dollars 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) De
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