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Saved Required information Problem 18-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 The following information applies to the questions displayed below! Astro
Saved Required information Problem 18-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 The following information applies to the questions displayed below! Astro Co. sold 20,300 units of its only product and incurred a $78,798 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 $153,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Hargin Income Statement Tor Year Ended December 31, 2019 Sales 5 767,340 Variable costs 537, 138 Contribution margin 230,202 Fixed costs 30,00 Net loss $78,73 Problem 18-4A Part 2 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 (Round your answers to 2 decimal places.) Contribution Margin per unit Proposed $ 0.00 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 Choose Denominator Break Even Point in Dollars Break-even point in dollars
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