Break-even point

Required Information [The following information applies to the questions displayed below.] Astro Co. sold 19,800 units of its only product and Incurred a $48,292 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 $148,000. 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 Variable costs 5 738, 540 590, 832 Contribution margin Fixed costs 147, 708 196, eve Net loss $ (48, 292) Required: 1. Compute the break-even point in dollar sales for year 2017. (Round your answers to 2 decimal places.) X Answer is complete but not entirely correct. Contribution Margin Per Unit Current Sales 37 30 Per unit Variable costs 14.02 & Per unit Contribution margin 22.38 Per unit Contribution Margin Ratio Choose Numerator: Choose Contribution Margin Denominator: Ratio Contribution margin per Unit Sales per unit Contribution margin ratio 22 38 X 37.30 60 00% Break-Even Point in Dollar Sales Choose Numerator: Choose Break-Even Point in Denominator: Dollars Total foted costs Contribution margin X Break-even point in per unit dollars 344.000 x 60.00% = 573.323