Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

education.com Sex nal_browser=0&launchurl=https%253A%252F 2 bonnectmheducation.com (Extra Credit) Saved Help Required information The following information applies to the questions displayed below.] Astro Company sold 23,000 units

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
education.com Sex nal_browser=0&launchurl=https%253A%252F 2 bonnectmheducation.com (Extra Credit) Saved Help Required information The following information applies to the questions displayed below.] Astro Company sold 23,000 units of its only product and reported income of $264,600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 44% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $156,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Tricone Statement Tor Year Ended December 31 Sales (556 per unit) $ 1,288,000 Variable costs ($35 per unit) 805.000 Contribution margin 483,000 Tixed costa 218,400 Income $ 264,600 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 Margie per unit Proposed Financial Functlsx LOOKUPS_Demot BMIS 250 HW reunion216571.png education.com malu browser=0&launchurl=https%253A 52Fenecimeducation.com (Extra Credit) Saved H Fixed costs 218,400 $ 264,600 Ingame 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimel places.) Contribution Margin per unit Proposed $ 0.00 Contribution Margin Ratio Numerator 1 Denominator: Contribution Margin Ratio Contribution margin ratio 0 Break-even point in dollar sales with new machine Numerator Denominator: 1 Break-Even Point in Dollars Break-even point in dollars Elanlal Funct. Dreunion 2.15571....png LOOKUPS Dempts MIS 250 HWb View History Bookmarks Profiles Tab Window Help Quem * FATX Netflix X Curio X Web Soor education.com hal_browser=0&launchurahttps%253A%252F26connect.meducation 22ty TExtra Credit) Saved Help Save Por Year Ended December 31 Sales ($56 per unit) $ 1,288,000 Variable costs ($35 per unit) 805,000 Contribution margin 483,000 Fixed costs 218,400 Income $ 264,600 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1.288,000. (Do not round intermediate calculations, Round your answers to the nearest whole dollar.) ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Contribution margin 5 D xtra Credit) Saved Help Sales ($56 per unit) Variable costs ($35 per unit) Contribution margin Fixed costs Income $ 1.288,000 805,000 483,000 218,400 $ 264,600 3. Compute the sales level required in both dollars and units to earn $260,000 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 dollara Numerator: Denominator: Sales dollars required Saleo level tequired in units Numentor Denominator: Sales units required 0 Financial Functis LOOKUPS Dem....pptx UMS250_HW7.b reunion21557Lpng

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

Accounting In Emerging Economies

Authors: Mathew Tsamenyi

1st Edition

1849506256, 9781849506250

More Books

Students also viewed these Accounting questions

Question

1 Why is job analysis important?

Answered: 1 week ago