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Help Say Exam 2 Review Required information The following information applies to the questions displayed below.) 8 Part 2 Astro Co. sold 20 200 units
Help Say Exam 2 Review Required information The following information applies to the questions displayed below.) 8 Part 2 Astro Co. sold 20 200 units of its only product and incurred a $51,692 loss ignoring taxes) for the current year, as shown here. During a planning session for year 2020'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 $152,000. The maximum output capacity of the company is 40.000 units per year. ASTRO COMPANY Contribution Racin Income Statement for Year Ended December 31, 2019 Sales $761,540 Variable costs 6e3, 232 Contribution margin 152, Fixed costs 200,00 Net loss ${51,692) 2. Compute the predicted break-even point in dollar sales for 2020 assuming the machine is installed and there is no change in the unit selling price. (Round your answers to 2 decimal places.) Contribution Margin per unit Proposed Contribution margin $ 0.00 Fixed costs Choose Denominator Contribution Margin Ratio Pretax income Sales Contribution margin ratio Variable costs Brak even point in dollar sales with new machine Chouse Numeraton Choose Denominater: 1 = Break-Even Point in Dollars Break-even point in dollars 0 sc TAW
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