Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Computing the break-even point in dollar sales for the year 2017. Required Information [The following information applies to the questions displayed below.] Astro Co. sold

Computing the break-even point in dollar sales for the year 2017.

image text in transcribed
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 $ 738, 548 Variable costs 590, 832 Contribution margin 147, 708 Fixed costs 196,090 Net loss $ (48, 292) Required: 1. Compute the break-even point in dollar sales for year 2017. (Round your answers to 2 decimal places.) Contribution Margin Per Unit Current 0.09 Contribution Margin Ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio Break-Even Point in Dollar Sales: Choose Numerator: Choose Denominator: Break-Even Point in Dollars Break-even point in dollars

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Debra C Jeter, Paul K Chaney

5th Edition

1118022297, 978-1118022290

More Books

Students also viewed these Accounting questions

Question

Can a single asset portfolio be efficient?

Answered: 1 week ago

Question

2. In what way can we say that method affects the result we get?

Answered: 1 week ago