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please make sure answer is visible. thank you. Required information [The following information applies to the questions displayed below.) Astro Company sold 20,500 units of
please make sure answer is visible. thank you.
Required information [The following information applies to the questions displayed below.) Astro Company sold 20,500 units of its only product and reported income of $77,400 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 49% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $151,000. Total units sold and the selling price per unit will not change, ASTRO COMPANY Contribution Margin Income statement Por Year Ended December 31 Sales ($51 per unit) $ 1.045,500 Variable contin ($42 per unit) 861,000 Contribution margin 184,500 Pixed cost 107.100 Income $ 77,400 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 places) $ Contribution Margin per unit Sales Variable costs Contribution margin Contribution Margin Ratio Proposed 1,045,500.00 Per unit Per unit 1.045,500.00 Per unit $ Numerator Denominator Contribution Margin Ratio Contribution margin ratio 0 Brak even point in dollar sales with new machines Denominator Break Evan Paint in Dollar Break-even point in dollars = 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,045,500. (Do not round Intermediate calculations. Round your answers to the nearest whole ole ASTRO COMPANY Contenari income Samant To Year Ended December 31 Contribution margin S 0 3. Compute the sales level required in both dollars and units to earn $210,000 of target income for next year with the machine Installed. (Do not round intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio" to nearest whole percentage) gured in dollar Numero Denominator Sales dollars required Semoquired in uns Denominator Sales units required Step by Step Solution
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