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Required information [The following information applies to the questions displayed below.] Astro Company sold 27,000 units of its only product and reported income of $190,300
Required information [The following information applies to the questions displayed below.] Astro Company sold 27,000 units of its only product and reported income of $190,300 for the current year. During a planning session for next year'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 $145,000. Total units sold and the selling price per unit will not change. 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,485,600. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,485,000. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.)
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