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please answer a three required questions Problem 21-3A Break-even analysis; income targeting and strategy C2 4 A1 P2 Astro Co. sold 20.000 units of its
please answer a three required questions
Problem 21-3A Break-even analysis; income targeting and strategy C2 4 A1 P2 Astro Co. sold 20.000 units of its only product and reported income of $25.000 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 40% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $241,000. The selling price per unit will not change. Required 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,000,000 Step by Step Solution
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