aw Required information [The following information applies to the questions displayed below.] Astro Company sold 26,500 units of its only product and reported income of $246,000 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 60% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $150,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 311 Sales ($50 per unit) Variable costs ($35 per unit) Contribution margin Fixed costs Income $1,325,000 927,500 397,500 151,500 $ 246,000 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 Contribution Margin Ratio 0.00 Per unit Numerator: Contribution margin per unit 15.00 Denominator: Selling price per unit $ 50.00 Contribution Margin Ratio Contribution margin ratio 30.00% Break-even point in dollar sales with new machine: Numerator: Fixed costs per unit Denominator Contribution margin per unit $ 151,500/ 30.00% $ Break-Even Point in Dollars Break-even point in dollars 505,000 < Prev 7 8 9 of 13 Next > Required information. [The following information applies to the questions displayed below.) Astro Company sold 26,500 units of its only product and reported income of $246,000 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 60% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $150,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement. For Year Ended December 31 Sales ($50 per unit) Variable costs ($35 per unit) Contribution margin Fixed costs Income $ 1,325,000 927,500 397,500 151,500 $ 246,000 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,325,000. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Required information [The following information applies to the questions displayed below.] Astro Company sold 26,500 units of its only product and reported income of $246,000 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 60% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $150,000, Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($50 per unit) Variable costs ($35 per unit) Contribution margin Fixed costs Income $ 1,325,000 927,500 397,500 151,500 $ 246,000 3. Compute the sales level required in both dollars and units to earn $160,000 of target income for next year with the machine installed. (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 Numerator: Denominator: Sales dollars required Sales level required in units Numerator: Denominator. = Sales units required