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Please help correct the fields in red. If you can, please place in grid. Thanks! Required information Problem 18-4A Break-even analysis; income targeting and forecasting
Please help correct the fields in red. If you can, please place in grid. Thanks!
Required information Problem 18-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 The following information applies to the questions displayed below.] Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018'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 $200,000. The maximum output capacity of the company is 40,000 units per year ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales Variable costs Contribution margin Fixed costs Net loss $1,000,000 800,000 200,000 250,000 $(50,000) Problem 18-4A Part1 Required 1. Compute the break-even point in dollar sales for year 2017 Contribution MarginP Current Sales Variable costs Contribution margin Contribution Margin Ratio 1,000,000 Per unit 800,000 Per 200,000 Per Choose ina Contribution Margin Choose Numerator: Contribution margin per Sales per uni Contribution margin ratio 200,000 XS 1,000,000 20% reak-Even Point in Dollar Sales: Choose Denominator: Break-Even Point in Choose Numerator: Contribution margin ratio Break-even point in dollars Total fixed costs 250,000 0%Step by Step Solution
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