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S ! Required information [The following information applies to the questions displayed below.] Astro Company sold 23,000 units of its only product and reported income
S ! Required information [The following information applies to the questions displayed below.] Astro Company sold 23,000 units of its only product and reported income of $264,600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 44% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $156,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($56 per unit) Variable costs ($35 per unit) Contribution margin Fixed costs Income Contribution Margin per unit 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimal places.) Contribution Margin Ratio Numerator: 1 $ 1,288,000 $ 805,000 483,000 218,400 $ 264,600 Proposed Denominator: 0.00 Contribution Margin Ratio Contribution margin ratio 0
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