all part of ONE question, so pretty please answer all parts. Thank you in advance!!
Required Information Problem 05-4A Break-even analysis; income targeting and forecasting Lo C2, P2, A1 [The following information applies to the questions displayed below) Astro Co. sold 20,900 units of its only product and incurred a $71,860 loss (ignoring taxes) for the current year, as shown here. During o planning session for year 2020's activities, the production manager notes that variable costs can be reduced 40% by Installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $159,000. The maximum output copacity of the company is 40,000 units per year ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2019 Sales $802,560 Variable costs 602, 920 Contribution margin 200,640 Fixed costs 272,500 Net loss $(71,860) Problem 05-4A Part 2 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. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct Contribution Margin per Proposed unit Sales $ 38.40 Por unit Contribution margin 9,60 Por unit Contribution margin 28.80 Per unit Contribution Margin Ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin per unit o Solling price per unit Contribution margin ratio 28.8031 $ 38.40 75.00% Break-even point in dollar sales with new machine Choose Numerator Choose Denominator Break-Even Polot in Dollars Contribution margin Foxed costs per unit ratio Break-even point in dollars $ 13 / 75.00% - 17 Problem 05-4A 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. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Contribution margin Problem 05-4A Part 4 4. Compute the sales level required in both dollars and units to earn $290,000 of target pretax income in 2020 with the machine installed and no change in unit sales price. (Do not round intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio" to nearest whole percentage) Sales lavel required in dollars Choose Numerator: Choose Denominator Sales Dollars Required Sales dollars required Sales lavel required in units Choose Numerator: Choose Denominator: Sales Units Required Salos units required Problem 05-4A 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. (Do not round intermediate calculations. Round "per unit answers" to 2 decimal places.) ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 $ Per Unit $ 38.40 Contribution margin
