Required information [The following information applies to the questions displayed below! Astro Co sold 20,000 units of its only product and incurred a $50,000 loss (gnoring 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 $200,000. 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 $1,000,000 Variable costs 300.000 Contribution margin 200,000 Fixed costs 250,000 Net loss 5 (50,000) Required: 1. Compute the break-even point in dollar sales for 2019 Current Year Contribution Margin Per Unit Sales Variable costs Contribution margin Contribution Margin Ratio Choose Numerator: Contribution margin per unit 5 0 Choose Denominator Selling price per unit Contribution Margin Ratio Contribution margin ratio Break Even Point in Dollar Sales Choose Numerator Total food couts Choose Denominator Contribution margin ratio Break Even Point in Dollars Break-even point in dollars ! Required information [The following information applies to the questions displayed below.) Astro Co. sold 20,000 units of its only product and incurred a $50,000 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 $200,000. 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 $1,000,000 Variable costs 800,000 Contribution margin 200,000 Fixed costs 250,000 Net loss $ (50,000) 2 Compute the predicted break-even point in dollar sales for 2020 assuming the machine is installed and there is no change in the unit selling price Contribution Margin Per Unit Proposed Contribution Margin Ratio Choose Numerator Choose Denominator: Contribution Margin Ratio Contribution margin ratio Break Even Point in Dollar Sales with New Machines Choose Numerator Choose Denominator: Break Even Point in Dollars Break-even point in dollars M + mon.co/map/indi.com.com De Wypie M2700 M Open Section CWC-ACCEL 5-Homework Required information The following information applies to the questions displayed below! Astro Co sold 20,000 units of its only product and incurred a $50,000 loss ignoring taxes) for the current year, as shown here. During planning session for year 2020's activities, the production manager notes that variable costs can be reduced Sox by installing a machine that automates several operations. To obtain these savings, the company must Increase its an foed costs by $200.000 The main output capacity of the company is 40.000 units per year ANTHO.COM Contribution Margintatet Year 100 Sales ble et Contribution in 900.000 2000 Piscut 3. Prepare a forecasted contbon marginancome statement for 2020 shows the expected results with the machine installed Assume that the selling price and the number of units sold will not change, and no income the wil bed ASTRO CON 5 Tech . o O C Required information The following information applies to the questions displayed below) Astro Co. sold 20,000 units of its only product and incurred a $50,000 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 $200,000. 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 $1,000,000 Variable costs se0.000 Contribution margin 200,000 Fixed costs 250.000 Net loss 5 (50,000) 3. Prepare a forecasted contribution margin income statement for 2020 that shows the expected results with the machine installed Assume that the unit selling price and the number of units sold will not change, and no income taxes will be due ASTRO COMPANY Forecasted Contribution Margin income Statement For Year Ended December 31, 2020 Contribution margin ! Required information [The following information applies to the questions displayed below) Astro Co sold 20,000 units of its only product and incurred a 550,000 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 $200,000. The maximum output capacity of the company is 40,000 units per year ASTRO COMPANY Contribution Margin Income Statement Fon Year Ended December 31, 2019 Sales $1,000,000 Variable costs 800,000 Contribution margin 200,000 Fixed costs 250,000 Net loss 5 (50,000) 4. Compute the sales level required in both dollars and units to earn $200,000 of target pretax income in 2020 with the machine installed and no change in unit sales price Sales level required in dollars Choose Numerator: Choose Denominator Sales Dollars Required Sales dollars required Sales level required in units Choose Numerator Choose Denominator Sales Units Required Sales units required Required information [The following information applies to the questions displayed below.) Astro Co sold 20,000 units of its only product and incurred a $50,000 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 $200,000. 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 $1,000,000 Variable costs 10.NO Contribution margin 200.000 Fixed costs 250,000 Net loss 5 (50,000) 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. (Round your intermediate calculation and final answers to the nearest whole dollar.) ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 11, 2020 5 50 Contribution margin