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bus 106 Required information The following information applies to the questions displayed below) Astro Company sold 26,500 units of its only product and reported income

bus 106
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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 ($5e per unit) $ 1,325,000 Variable costs ($95 per unit) Contribution margin 397,500 Fixed costs 151, 500 Income $ 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.) Por unit Contribution margin Contribution Margin Ratio Numerator Denominator Contribution Margin Ratio Contribution marginato Break-even point in dollar sales with new machine Numero Denominator Break-even Paintin Dons 1. Compute the break-even point in dollar sales for next year assuming the machine is instad. (Round your answers to 2 decimal places.) Per unit Contribution margin Contribution Margin Ratio Numerator: 1 Denominator Contribution Margin Ratio Contribution margin ratio 0 Break-even point in dollar sales with new machine: Numerator Denominator Break Even Point in Dollars Break-even point in dollars D Contribution margi Fixed costs Income 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. Assime 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 0 Contribution margin $ 0 Variable costs ($35 per unit) Contribution margin Fixed costs Income $ 1,325,000 927,500 397.500 151, 500 $ 245,000 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

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