A company sold 4,100 units of its only product and reported the following contribution margin income statement for this year. Contribution Margin Income Statement For Year Ended December 31 Sales ($56 per unit) Variable costs ($41 per unit) Contribution margin Fixed costs Income For next year, management estimates that variable costs per unit can be reduced by $13 by installing a new machine. To obtain these savings, the company must increase its annual fixed costs by $49,200. The selling price per unit will not change. Complete this question by entering your answers in the tabs below. Required A Required B Numerator: $ 229,600 168,100 61,500 34,850 $ 26,650 Required C Compute the break-even point in dollar sales for next year assuming the new machine is installed. Contribution Margin Ratio Numerator: 1 Denominator: = Break-Even Point in Dollar Sales with New Machine: 1 Denominator: 1 0 0

A company sold 4,100 units of its only product and reported the following contribution margin income statement for this year. For next yeor, management estimates that variable costs per unit can be reduced by $13 by installing a new machine. To obtain these For next year, management estimates that variable costs per unit can be reduced by $13 by instaling Complete this question by entering your answers in the tabs below. Cnmnute the break-even point in dollar sales for next year assuming the new machine is installed. or next year, management estimates that variable costs per unit can be reduced by 513 by instaing a new machine. To obtain- these avings, the company must increase its annual fixed costs by $49,200. The seling price per unit will not change. Complete this question by entering your answers in the tabs below. Prepare a contribution margin income statement for pext year that shows the expected results with the new machirie instailed. For next year, management estimates that variable costs per unit can be reduced by $13 by installing a new machine. To obtain these savings, the company must increase its annual fixed costs by $49,200. The selling price per unit will not change. Complete this question by entering your answers in the tabs below. Compute the sales level required in dollars to earn $41,700 of target income for next year with the new machlne instailed