Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Astro Co. sold 19,400 units of its only product and incurred a $44,828 kss (ignoring taxes) for the current year, as shown here During a

image text in transcribed
Astro Co. sold 19,400 units of its only product and incurred a $44,828 kss (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 $144.000. The maximum output capacity of the company is 40.000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2019 Sales $715,860 Variable costs 572,688 Contribution margin 143, 172 Fixed costs 188,888 Net loss $(44,828) 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 Nurruerator: 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Operations Management Sustainability and Supply Chain Management

Authors: Jay Heizer, Barry Render, Chuck Munson

10th edition

978-0134183954, 134183959, 134181980, 978-0134181981

Students also viewed these Accounting questions