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 19,100 units 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 annuel fixed costs by $141,000. The maximum output capacity of the company ls 40,000 units per year of its only product and incurred a $63,282 loss (ignoring taxes) for the current year as shown Contribut.ion Margin Inecne Statenent 699,060 489,342 209,718 Variable coats Contribution margin Fixed costs 3,000 (63,282) Set loas Problem 21-4A Part 4 4. Compute the sales level required in both installed and no change in unit sales price. (Do not round intermediate Round "Contribution margin ratio to nearest whole percentage) dollars and units to earn $110,000 of target pretax income in 2018 with the machine calculations. Round your answers to 2 decimal places. Prey6 Prev 77 Next> 3 5 6 7 8 Problem 21-4A Part 4 4 Compute the sales level required in both dollars and units to earn $110,000 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) costs plus pretax income Sales dellars required costs plus pretax income margin per unitSales units required Prew 7 of 7 Next iiu L 5 8 0 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 19,100 units of its only product and incurred a $63,282 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 $141,000. The maximum output capacity of the company is 40,000 units per year Contribution Nargin Inoome Statenent Variable coata Contrlbution sargin Pixed costs Net loss 699,060 489,342 273-000 (63,282) 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. (De not round intermediate calculations. Round "per unit answers" to 2 decimal places) Prey 7 of 7 Net 5 8 Variable costs Contribation nargin Pixed costs Set loss 489,342 209,718 273,000 s (3,282) 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 intermedliate calculations. Round "per unit answers" to 2 decimal places.) Forecasted Contribution Margin Income Statement For Year Ended December 31, 20118 $ 36.60
