Astro Co. sold 19,900 units of its only product and incurred a $49148 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018'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 $149,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 $ 744,260 Sales Variable costs 595,408 148852 Contribution margin Fixed costs 198,000 s (49348) Net loss Award: 2.00 points Required: 1. Compute the break-even point in dollar sales for year 2017- (Round your answers to 2 decimal places.) Contribution Margin Per Unit Current 0.00 Contribution Margin Ratio Choose Numerator Choose Denominator: Contribution Margin Ratio Contribution margin ratio Break-Even Point in Dollar Sales: Break-Even Point in Dollars Choose Denominator Choose Numerator: Break-even point in dollars Astro Co. sold 19,900 units of its only product and incurred a $49148 loss (ignoring texes) for the current year as shown here. During a planning session for year 2018's activities, the production manager notes thet varieble costs can be reduced 50% by installing machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $149,000. The maximum output capacity of the company is 40,000 units per year ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales 744,260 595,408 148 852 198,000 s (49148 Variable costs Contribution margin Fbxed costs Net loss Award 2.00 points 2. Compute the predicted break-even point in dollar sales for year 2018 assuming the machine is installed and there is no change in the unit selling price. (Round your answers to 2 decimal places.) Contribution margin per unit Proposed 0.00 Contribution Margin Ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio Break-even point in dollar sales with new machine: Choose Numerator Choose Denominator: Break-Even Point in Dollars Break-even point in dollars 0 Astro Co. sold 19,900 units of its only product and incurred a $49.148 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018'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 $149,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 $744,260 595,408 148,852 Sales Variable costs Contribution margin Fixed costs 198,000 $ (49148) Net loss Award: 2.00 points 3. Prepare a forecasted contribution margin income statement for 2018 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 Co. sold 19,900 units of its only product and incurred a $49148 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018'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 $149,000. The maximum output capacity of the company is 40,000 units per year ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales S 744,260 595,408 Variable costs Contribution margin 148,852 Fixed costs 198,000 s (49148) Net loss Award: 2.00 points 4. Compute the sales level required in both dollars and units to eam $190,000 of target pretax income in 2018 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 level required in dollars =Sales dollars required = Sales dollars required Choose Numerator: Choose Denominator: Sales level required in units Sales units required Sales units required Choose Numerator: Choose Denominator Astro Co. sold 19,900 units of its only product and incurred a $49,148 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018'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 $149,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 $744,260 595,408 148,852 Sales Variable costs Contribution margin Fixed costs 198,000 $ (49148) Net loss Award: 2.00 points 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.)
