Jetson Co. sold 20,400 units of its only product and incurred a $53,368 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2012s 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 $154,000. The maximum output capacity of the company is 40,000 units per year.

JETSON COMPANY Contribution Margin Income Statement For Year Ended December 31, 2011

Sales

$

773,160

Variable costs

618,528

Contribution margin

154,632

Fixed costs

208,000

Net loss

$

(53,368

)

Required:
1.	Compute the break-even point in dollar sales for year 2011. (Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.)

Break-even point in dollar sales for year 2011

$

2.	Compute the predicted break-even point in dollar sales for year 2012 assuming the machine is installed and there is no change in the unit sales price. (Round your intermediate calculations to 2 decimal places and final answer to nearest dollar amount. Omit the "$" sign in your response.)

Break-even point in dollar sales for year 2012

$

3. Prepare a forecasted contribution margin income statement for 2012 that shows the expected results with the machine installed. Assume that the unit sales price and the number of units sold (20,400 units) will not change, and no income taxes will be due. (Input all amounts as positive values. Omit the "$ sign in your response.) JETSON COMPANY Forecasted Contribution Margin Income Statement (Click to select) (Click to select) + (Click to select + (Click to select)+ For Year Ended December 31, 2012 Net income