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Required information [The following information applies to the next question displayed below.) Hodge Co. sold 19,100 units of its only product and incurred a $63,282
Required information [The following information applies to the next question displayed below.) Hodge 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 2021'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, Hodge Co. must increase its annual fixed costs by $141,000. The maximum output capacity of the company is 40,000 units per year. HODGE COMPANY Contribution Margin Income Statement For Year Ended December 31, 2020 Sales $699,060 Variable costs 489,342 Contribution margin 273,000 $ (63,282) Til 209, 718 Fixed costs Net loss Compute the predicted break-even point in dollar sales for 2021 assuming the machine is installed and there is no change in the unit selling price. (Round your answers to 2 decimal places.) Contribution Margin per unit Proposed Contribution Margin Ratio Choose Numerator Choose Denominator: Contribution Margin Ratio Compute the predicted break-even point in dollar sales for 2021 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 Contribution margin Sales $ 0.00 Contribution Margin Ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio Break-even point in dollar sales with new machine Choose Numerator Choose Denominator Break Even Point in Dollars Break-even point in dollars 0
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