Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please fix incorrect parts 4 Problem 05-4A Part 1 Required: 1. Compute the break-even point in dollar sales for 2019. (Round your answers to 2

Please fix incorrect parts image text in transcribed
image text in transcribed
image text in transcribed
4 Problem 05-4A Part 1 Required: 1. Compute the break-even point in dollar sales for 2019. (Round your answers to 2 decimal places.) Part 1 of 5 3 points Answer is complete but not entirely correct. Current Year $ ooo 38.00 Per unit 28.50 Per unit 9.50 Per unit Contribution Margin Per Unit Sales Variable costs Contribution margin Contribution Margin Ratio Choose Numerator Contribution margin per unit $ 584 250.00 Break-Even Point in Dollar Sales: Choose Numerator Choose Denominator: Selling price per un 779.000.000 Contribution Margin Ratio Contribution margin ratio 75.00% Choose Denominator: Break-Even Point in Dollars Fixed costs per unit Contribution margin ratio - Break-even point in dollars 262 500 0.75% 3 35,000,000 Problem 05-4A Part 4 4. Compute the sales level required in both dollars and units to earn $250,000 of target pretax income in 2020 with the machine installed and no change in unit sales price. (Do not round Intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio" to nearest whole percentage) Answer is complete but not entirely correct. Sales level required in dollars Choose Numerator Fixed costs plus net income 667,500 Satos level required in units Choose Numerator: Fixed costs plus net income 667,500 Choose Denominator: Contribution margin ratio 55.00% Sales Dollars Required Sales dollars required S 1.213,636 Choose Denominator: Contribution margin per unit 20.90 Sales Units Required Sales units required 31,938 units S Required information Problem 05-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 [The following information applies to the questions displayed below) Astro Co. sold 20,500 units of its only product and incurred a $67750 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 40% by installing a machine that automates several operations. To obtain these savings, the company must Increase its annual fixed costs by $155,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY contribution Margin Income statement Tor Year Ended December 11, 2019 Variable costs Contribution margin Fixed costs 262,500 5767,750) Sales 5779,000 584,250 194, 750 tiet loss

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quality Auditing In Construction Projects

Authors: Abdul Razzak Rumane

1st Edition

1032570245, 978-1032570242

More Books

Students also viewed these Accounting questions