Required 1. Prepare a scatter diagram for these data with sales volume (in S) plotted on the horizontal axis and total cost plotted on the vertical axis. 2. Estimate both the variable costs per sales dollar and the total monthly fixed costs using the high-low method. Draw the total costs line on the scatter diagram in part 1. 3. Use the estimated line of cost behavior and results from part 2 to predict future total costs when sales volume is (a) $200,000 and (b) $300,000. 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 2014's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To ob- tain 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, 2013 Sales $1,000,000 Variable costs 800,000 Contribution marginal Fixed costs 250,000 Net loss $750,000) 200,000 Required 1. Compute the break-even point in dollar sales for year 2013. 2. Compute the predicted break-even point in dollar sales for year 2014 assuming the machine is in- stalled and there is no change in the unit sales price. 3. Prepare a forecasted contribution margin income statement for 2014 that shows the expected results with the machine installed. Assume that the unit sales price and the number of units sold will not change, and no income taxes will be due. 4. Compute the sales level required in both dollars and units to earn $140,000 of after-tax income in 2014 with the machine installed and no change in the unit sales price. Assume that the income tax rate is 30%. (Hint: Use the procedures in Exhibits 21.22 and 21.23.) (Round answers to whole dollars or units.) 5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume an income tax rate of 30%, Vanna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 50,000 units of each product. Sales and costs for each product follow. Product T Producto