Question
Required information [The following information applies to the questions displayed below.] Astro Co. sold 19,000 units of its only product and incurred a $128,000 loss
Required information [The following information applies to the questions displayed below.] Astro Co. sold 19,000 units of its only product and incurred a $128,000 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 $140,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement Sales For Year Ended December 31, 2019 Variable costs Contribution margin Fixed costs Net loss $ 760,000 608,000 152,000 280,000 $ (128,000) 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 Contribution margin $ Per Unit $ $ 40.00 .
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