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Required information [The following information applies to the questions displayed below] Astro Company sold 21.500 units of its only product and reported income ot$68.60010rthe current
Required information [The following information applies to the questions displayed below] Astro Company sold 21.500 units of its only product and reported income ot$68.60010rthe current year. During a planning session for next year's activities. the production manager notes that variable costs can be reduced 47% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $153,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales {$53 per unit) $ 1,139,596 Variable costs ($46 per unit) 989,996 Contribution margin 150,596 Fixed costs 81,906 Income $ 68,669 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,139,500. Note: 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 551139500. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar. Contribution margin
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