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Assessment Required information [The following information applies to the questions displayed below) Astro Company sold 25,000 units of its only product and reported income
Assessment Required information [The following information applies to the questions displayed below) Astro Company sold 25,000 units of its only product and reported income of $117,600 for the current year. During a planning session for next year'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 $149,000 Total units sold and the selling price per unit will not change ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($40 per unit) Variable costs ($32 per unit) 103 Contribution margin Fixed costs Income $1,000,000 800,000 200,000 82,400 $117,600 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 unit i Proposed Contribution Margin Ratio Numerator Denominator: Contribution Margin Ratio Contribution margin rabo Break-even point in dollar sales with new machine: Numerator Denominator: Break-Even Point in Dollars Break-even point in dollars
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