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Required information [The following information applies to the questions displayed below.] Astro Co. sold 20,300 units of its only product and incurred a $78,798 loss
Required information [The following information applies to the questions displayed below.] Astro Co. sold 20,300 units of its only product and incurred a $78,798 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2020'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 $153,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2019 Sales $767, 340 Variable costs 537, 138 Contribution margin 230, 202 Fixed costs 309, 000 Net loss $ (78, 798) 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.) ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 $ Per Unit $ $ 37.80 Contribution margin
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