Required information [The following information applies to the questions displayed below.] Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $200 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $270,000, up to a maximum capacity of 700,000 yards of rope. Forecasted variable costs are $140 per 100 yards of XT rope. 1. Estimate Product XT's break-even point in terms of sales units and sales dollars. (1 unit = 100 yards) per 100 yds. Contribution Margin Sales Plus: Contribution margin Contribution Margin ratio Choose Numerator: Choose Denominator = = Contribution Margin Ratio Contribution margin ratio 1(a) Estimate Product XT's break-even point in terms of sales units. (1 unit = 100 yards) Choose Numerator: Choose Denominator: = = Break-Even Units Break-even units 1(b) Estimate Product XT's break-even point in terms of sales dollars. Choose Numerator: Choose Denominator: = = Break-Even Dollars Break-even dollars 0 Required information (The following information applies to the questions displayed below.) Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $200 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $270,000, up to a maximum capacity of 700,000 yards of rope. Forecasted variable costs are $140 per 100 yards of XT rope. 2. Prepare a contribution margin income statement showing sales, variable costs, and fixed costs for Product XT at the break-even point. PRAVEEN CO. Contribution Margin Income Statement (at Break-Even) Product XT Units per unit Total Contribution margin Required: 1. Compute the break-even point in dollar sales for 2019. Contribution Margin Per Unit Current Year Contribution Margin Ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio Break-Even Point in Dollar Sales: Choose Numerator: I Choose Denominator: = = 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: 1 Choose Denominator: = Contribution Margin Ratio Contribution margin ratio Break-Even Point in Dollar Sales with New Machine: Choose Numerator: 1 Choose Denominator: = = Break-Even Point in Dollars Break-even point in dollars L 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) .. Compute the sales level required in both dollars and units to earn $200,000 of target pretax income in 2020 with the machine nstalled 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 Che 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) nces 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 31, 2020 $ Per Unit $ $ 50 Contribution margin