Ch 18 Homework 6 Part of Required Information Problem 18.4A Break even analysis; income targeting and forecasting LO C2, P2, A1 (The following information applies to the questions displayed below) 166 points Astro Co. sold 20.000 units of its only product and incurred a $50,000 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 $200,000. The maximum output capacity of the company is 40.000 units per year Skipped ASTRO COMPANY Contribution Marine Statement For Year Ended December 31, 2017 Sales 51 Variable . Contribution in 25. See Required: 1. Compute the break-even point in dollar sales for year 2017 - Current Contribution Margin Per Unit Sales Variable costs Contribution margin Contribution Margin Ratio Choose Numerator: 0 TO IDE enominator = = Contribution Margin Ratio Contribution margin ratio Break-Even Point in Dollar Sales: Choose Numerator: Denominator: Break-Even Point in Dollars Break-even point in dollars Problem 18-4A Part 2 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. Contribution margin per unit P roposed Sales Variable costs Contribution margin Contribution Margin Ratio Choose Numerator: 30 Choose Denominator Contribution Margin Ratio Contribution margin rabo Break-even Point in Dollar Sales with New Machine Choose Numerator: Choose Denominator Break Even Pointin Dollars Bresiven point in dollars Problem 18-4A Part 3 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 ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 Contribution margin