Astro Company sold 2 9 , 0 0 0 units of its only product and reported income
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Question:
Astro Company sold units of its only product and reported income of $ for the current year. During a planning session for next years activities, the production manager notes that variable costs can be reduced by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $ Total units sold and the selling price per unit will not change.
ASTRO COMPANY
Contribution Margin Income Statement
For Year Ended December
Sales $ per unit $
Variable costs $ per unit
Contribution margin
Fixed costs
Income $
Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $Do not round intermediate calculations. Round your answers to the nearest whole dollar.
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