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this is part 4 but I couldn't answer it. let me know if you need anything else Required information Problem 05-4A Break-even analysis, income targeting
this is part 4 but I couldn't answer it.
let me know if you need anything else
Required information Problem 05-4A Break-even analysis, income targeting and forecasting LO C2, P2, A1 The following information applies to the questions displayed below) Astro Co sold 19.000 units of its only product and incurred a $128.000 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 $140.000. 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 $ 750,000 Variable costs 688,000 Contribution margin 152,000 Fixed costs 280,000 Net loss $(128,000 Problem 05-4A 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.) ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 S Per Unit S S 40 00 Contribution margin Required information Problem 05-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 [The following information applies to the questions displayed below.] Astro Co sold 19.000 units of its only product and incurred a $128,000 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 $140,000. 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 $ 760,000 Variable costs 608,000 Contribution margin 152,000 Fixed costs 280,000 Net loss $ 128,000) Problem 05-4A Part 4 Problem 05-4A Part 4 4. Compute the sales level required in both dollars and units to earn $100,000 of target pretax income in 2020 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) 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 requiredStep by Step Solution
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