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5 Saved art 1 of 2 83 ints ebook ! Required information Problem 18-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1,
5 Saved art 1 of 2 83 ints ebook ! Required information Problem 18-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2 [The following information applies to the questions displayed below.) Astro Company sold 20,500 units of its only product and reported income of $77,400 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 49% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $151,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Print References Sales ($51 per unit) Variable costs ($42 per unit) Contribution margin Fixed costs Income $1,045,500 861,000 184,500 107,100 $ 77,400 Problem 18-3A (Algo) Part 1 of 2 Problem 18-3A (Algo) Part 1 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 unit Proposed $ 51.00 Per unit Por unit 51.00 Per unit Sales Variable costs Book Contribution margin $ Print Contribution Margin Ratio ferences Numerator: Contribution margin per unit Denominator: Contribution Margin Ratio Selling price per unit Contribution margin ratio Break-even point in dollar sales with new machine: Numerator: Total foxed costs Denominator: Contribution margin ratio Break-Even Point in Dollars Break-even point in dollars 0
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