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5 ! Required information [The following information applies to the questions displayed below.] 6 points eBook Astro Co. sold 20,300 units of its only product
5 ! Required information [The following information applies to the questions displayed below.] 6 points eBook Astro Co. sold 20,300 units of its only product and incurred a $78,798 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 $153,000. The maximum output capacity of the company is 40,000 units per year. Print References ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2019 Sales $767,340 Variable costs 537,138 Contribution margin 230,202 Fixed costs 309,000 Net loss $(78,798) Required: 1. Compute the break-even point in dollar sales for 2019. (Round your answers to 2 decimal places.) Contribution Margin Per Unit Current Year Contribution Margin Ratio Choose Numerator: 1 Choose Denominator: Contribution Margin Ratio Contribution margin ratio / Break-Even Point in Dollar Sales: Choose Numerator: / Choose Denominator: Break-Even Point in Dollars 1 Break-even point in dollars
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