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[The following information applies to the questions displayed below Astro Co. sold 19.900 units of its only product and incurred a $49148 loss ignoring taxes)

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[The following information applies to the questions displayed below Astro Co. sold 19.900 units of its only product and incurred a $49148 loss ignoring taxes) for the current year as shown here. During a planning session for year 2016'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 $149.000. The maximum output capacity of the company is 40,000 units per year ASTRO COMPANY Contribution Margn Income Statement For Year Ended December 31, 2015 Sales Variable costs $ 744.260 595.408 Contribution margin Fixed costs 148.852 198,000 Net loss $ (49148) value 7.50 points Problem 21-4A Part 1 Required: 1. Compute the break-even point in dollar sales for year 2015. (Round your answers to 2 decimal places.) Current Contribution Margin Per Unit 0.00 Contribution Margin Ratio Choose Denominator: Contribution Margin Ratio = Contribution margin ratio Choose Numerator: Break-Even Point in Dollar Sales: Choose Numerator: I Choose Denominator:Break-Even Point in Dollars Break-even point in dollars O Type here to search 2. Compute the predicted break-even point in dollar sales for year 2016 assuming the machine is i 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 Denominator:Contribution Margin Ratio # | Contribution margin ratio Choose Numerator: Break-even point in dollar sales with new machine: Choose Numerator: Choose Denominator:Break-Even Point in Dollars Break-even point in dollars Problem 21-4A Part 3 3. Prepare a forecasted contribution margin income statement for 2016 that shows the expected results with the machine installed. Assume that the unit selling price and the number of units sold will not change, and no income taxes will be due. (Do not round intermediate calculations. Round your answers to 2 decimal places.) ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2016 Contribution margin robiem 21-4A Part 4 4. Compute the sales level required in both dollars and units to earn $190,000 of target pretax income in 2016 with the machine installed and no change in unit sales price. (Do not round intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio to nearest whole percentage) Choose Numerator: Choose Denominator: Sales dollars required # | Sales dollars required Sales level required in units Choose Numerator: e Denominator: Sales units required Sales units required value 7.50 points Problem 21-4A Part 5 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. (Do not round intermediate calculations. Round "per unit answers" to 2 decimal places and other answers to nearest whole dollar.) ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2016 $ Per Unit S 37.40 Contribution margin

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