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Required information The following information applies to the questions displayed below.) Astro Company sold 25,500 units of its only product and reported income of $277,200

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Required information The following information applies to the questions displayed below.) Astro Company sold 25,500 units of its only product and reported income of $277,200 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 $148,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($50 per unit) $ 1,275,000 Variable costs ($32 per unit) 816,000 Contribution margin 459,00 Fixed costs 181,880 Income $ 277,200 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimal places.) Per unit Contribution margin Contribution Margin Ratio Numerator: Denominator Contribution Margin Ratio Contribution margin ratio Break-even point in dollar sales with new machine: Numerator: Denominator Break-Even Point in Dollars Break-even point in dollars 2 Part 2 of 2 Required information [The following information applies to the questions displayed below) Astro Company sold 25,500 units of its only product and reported income of $277,200 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 $148,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($50 per unit) $ 1,275,000 Variable costs ($32 per unit) 816,000 Contribution margin 459,000 Fixed costs 181,800 Income $ 277,200 0129:24 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1.275,000. (Do not round intermediate calculations. Round your answers to the nearest whole dollar) ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Contribution margin

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