For Year Ended December 31, 2817 Sales $1,000,000 88e,000 200.00e Variable costs Contribution nargin Fixed costs 25e,eee (5e,eee Net loss Problem 18-4A Part 1 Required: 1. Compute the break-even polnt In dollar sales for year 2017. Answer is complete and correct Contribution Margin Per Unit Current Per Sales 50 unit Per unit Per Variable costs 40 Contribution margin 10 unit Contribution Margin Ratio Contribution Margin Ratio Choose Denominator Choose Numerator: Contribution margin per Contribution margin ratio Sales per unit unit 20% 10 50 Break-Even Point in Dollar Sales: Choose Break-Even Point in Dollars Choose Numerator Denominator: Contribution margin Total fixed costs Break-even point in dollars ratio 20% 250,000 1,250,000 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. ASTRO COMPANY Contribution Margin Income Statement For Year Ended Decemberr 31, 2017 $1,eee.e8e Sales Variable costs 800.080 Contribution margin 200,eee 250.ea0 Fixed costs (50,0ee) Net loss oblem 18-4A Part 4 Compute the sales level required in both dollars and units to eearn $200,000 of target pretax income in 2018 with the machine talled and no change in unit sales price. les level required in dollars Choose Numerator: Choose Denominator: Sales Dollars Required Flioxed costs plus pretax income Contribution margin ratio Sales dollars required 650,000 0 les level required in units Choose Numerator: / Choose Denominator: Sales Units Required Fixed costs plus pretax income Contribution margin per unit Sales units required 650.000 S C 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 productlon manager notes that varlable 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 capaclty of the company Is 40,000 unlts per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2817 Sales $1,0e0,e0e 88e,0ee Variable costs Contribution nargin Fixed costs 28e,000 250,0e0 (5e,e80) Net loss Problem 18-4A Part 5 5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed In part 4. Assume no Income taxes will be due. (Round your intermediate calculation and final answer to the nearest whole dollar) ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 Per Unit $ 50 Contribution margin 0