HOMEWORK QUEStION 7

Required information [The following information applies to the next question displayed below) Hodge Co sold 20,800 units of its only product and incurred a $56,672 loss (Ignoring taxes) for the current year, as shown here. During a planning session for year 2021'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, Hodge Co must Increase its annual fixed costs by $158.000 The maximum output capacity of the company is 40,000 units per year. HOOGE COMPANY Contribution Margin Income Statement For Year Ended December 31, 2020 Sales 5796,640 Variable costs 63,312 Contribution margin 159,328 Fixed costs 216,000 Net loss $ 56,672) Compute the predicted break-even point in dollar sales for 2021 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 Net loss 5 (56,672) Compute the predicted break even point in dollar sales for 2021 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 $ 0.00 Contribution Margin Ratio Choose Numerator Choose Denominator Contribution Margin Ratio Contribution margin ratio Break even point in dollar sales with new machine: Choose Numerator: Choose Denominator: 1 Break Even Point in Dollars Break-even point in dollars