Required information The following information applies to the questions displayed below.) Astro Company sold 20,500 units of its only product and reported income of $77,400 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 49% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $151,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (551 per unit) $ 1,045,500 Variable costs ($42 per unit) 861,000 Contribution margin 184,500 Fixed costs 107, 100 Income $ 77,400 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: 1 Denominator: Contribution Margin Ratio Contribution margin ratio Break-even point in dollar sales with new machine: Numerator: 1 Denominator: Break-Even Point in Dollars Break-even point in dollars Required information [The following information applies to the questions displayed below) Astro Company sold 20,500 units of its only product and reported income of $77,400 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 49% by Installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $151,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (551 per unit) $ 1,045,500 Variable costs ($42 per unit) 861,000 Contribution margin 184,500 Fixed costs 107, 100 Income $ 77,400 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,045,500. (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 ! Required information {The following information applies to the questions displayed below) Astro Company sold 20,500 units of its only product and reported income of $77,400 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 49% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $151,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (551 per unit) $ 1,045,500 Variable costs ($42 per unit) 861,000 Contribution margin 184,500 Fixed costs 107, 100 Income $ 77,400 3. Compute the sales level required in both dollars and units to earn $ 210,000 of target income for next year with the machine installed. (Do not round intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio" to nearest whole percentage) Sales level required in dollars Numerator: Denominator: Sales dollars required Sales level required in units Numerator Denominator: - Sales units required
