Required information Problem 21-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 (The following information applies to the questions displayed below.) Astro Co. sold 19,800 units of its only product and incurred a $48,292 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 $148,000. 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 $ 738.540 Variable costs 590,832 Contribution margin 147,708 Fixed costs 196,000 Net loss $ (48,292) Problem 21-4A Part 1 Required: 1. Compute the break-even point in dollar sales for year 2017. (Round your answers to 2 decimal places.) Current Contribution Margin Per Unit 0.00 Choose Denominator: Contribution Margin Ratio Choose Numerator: Contribution Margin Ratio Contribution margin ratio - Choose Denominator: Break-Even Point in Dollar Sales: Choose Numerator: Break-Even Point in Dollars Break-even point in dollars Check my work Required information Problem 21-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 The following information applies to the questions displayed below! Astro Co. sold 19,800 units of its only product and incurred a $48,292 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 $148,000. 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 $ 738,540 590,832 Variable costs 147,708 Contribution margin 196,000 Fixed costs $ (48,292) Net loss ences Problem 21-4A Part 2 2. Compute the predicted break-even point in dollar sales for year 2018 assuming the machine is installed and there is no change in the unit selling price. (Round your answers to 2 decimal places.) Proposed Contribution margin per unit 0.00 Contribution Margin Ratio Contribution Margin Ratio 1 Choose Denominator: Contribution pargin ratio Choose Numerator: Break Even Point in Dollars Break-even point in dollars Choose Denominator Break-even point in dollar sales with new machine: Choose Numerator: 09 Welp Set Required information Problem 21-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 [The following information applies to the questions displayed below.) Astro Co. sold 19,800 units of its only product and incurred a $48,292 loss ignoring taxes for the current years 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 increase its annual fixed costs by $148,000. 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 $ 738,540 Variable costs 590,832 Contribution margin 147,708 Fixed costs 196,000 Net loss $ (48,292) Problem 21-4A Part 3 3. Prepare a forecasted contribution margin income statement for 2018 that shows the expected results with the machine stated Assume that the unit selling price and the number of units sold will not change, and no income taxes will be dur (Do not round intermediate calculations. Round your answers to the nearest whole dollar) Sales ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 $ 738,540 738,540 Variable costs Contribution margin Fixed costs Net income 344.000/ 394,540 $ 4 of 5 Help Sets Required information Problem 21-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 The following information applies to the questions displayed below) Astro Co. sold 19,800 units of its only product and incurred a $48,292 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 $148,000. The maximum output capacity of the company's 40,000 unts per you. eBook Print ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales Variable costs $ 738,540 Contribution margin 590,832 147.708 Fixed costs 196,000 Net loss $ (48,292) -ferences Problem 21-4A Part 4 4. Compute the sales level required in both dollars and units to earn $180,000 of target pretax income in 2018 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) Sales dollars required Sales dollars required Sales level required in dollars Choose Numerator: Choose Denominator: Fixed costs Sales Sales units required Sales units required Choose Denominator: - Sales level required in units Choose Numerator: of incorrect for the work you have completed som - CCTV Preise ting does not indicate completion Belum Required information Problem 21-4A Break-even analysis; income targeting and forecasting LO C2.P2, A1 The following information applies to the questions displayed below) Astro Co. sold 19,800 units of its only product and incurred a $48,292 loss fignoring taxes for the current years town 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 $148,000. The maximum output capacity of the company is 40.000 units per you ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales $ 738.540 Variable costs 590,832 Contribution margin 147,708 Fixed costs 196,000 Net loss $ (48,292) Problem 21-4A Part 5 5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume no income taxes will be due. (Do not round intermediate calculations. Round "per unit answers to 2 decimal places) $ Per $ Answer is not complete. ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 Unit $ 37.30 $ 738,540 590 832 Sales $ 14.92 147,708 Variable costs 344,000 Contribution margin Fixed costs Income before taxes -196.292