Suppose that Aubrey Company is considering an investment in new technology that will increase fixed costs by $$211,000$ per year, but will lower variable costs to $40$

percent of sales. Units sold will remain unchanged. Prepare a budgeted income statement assuming the company makes this investment. Round all amounts to the

nearest dollar.

What is the new break$-$even point in units, assuming the investment is made? In your computations, round the unit contribution margin to the nearest cent.

Round your final answer to the nearest whole unit.

unitsBreak$-$Even in Units and Sales Dollars, Margin of Safety

Aubrey Company produces a single product. Last year's income statement is as follows:

Required:

Compute the break$-$even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the

contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar.

Break$-$even units

units

Break$-$even dollars

$

What was the margin of safety in dollars for the Company last year? Round your final answer to the nearest whole dollar.

$

Suppose that Aubrey Company is considering an investment in new technology that will increase fixed costs by $$211,000$ per year, but will lower variable costs to $40$

percent of sales. Units sold will remain unchanged. Prepare a budgeted income statement assuming the company makes this investment. Round all amounts to the

nearest dollar.