t.html Help Save & Exit Submit Required information The following information applies to the questions displayed below. Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018'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 $200,000. The maximum output capacity of the company is 40,000 units per year ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales Variable costs Contribution margin Fixed costs Net loss $1,000,000 800, 090 200,000 250,000 of 7 ll Next > Prev 5 6 845 PM Help Save & Exit Submit Check my work Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $20; white, $35; and blue, $65Tre er unit variable costs to manufacture and sell these products are red, $12, white, $22; and blue, $50. Their sales mix is reflected in a ratio of 5:4:2 (red:white:blue). Annual fixed costs shared by all three products are $250,000. One type of raw material has been used to manufacture all three products. The company has developed a new material of equal quality for less cost. The new material would reduce variable costs per unit as follows: red, by $6, white, by $12; and blue, by $10. However, the new material requires new equipment, which will increase annual fixed costs by $50,000. Required: 1. Assume if the company continues to use each individual product. (Round composite units up to next whole number.) the old material, determine its break-even point in both sales units and sales dollars of 1. Determine its break-even point in both sales units and sales dollars of each individual pr termine the selling price per c e un Ratio Selling price per unit Total per Red White Blue 20.00 35.00 65.00 100.00 140.00 130.00 370.00 Determine the variable costs per composite unit. RatioVariable cost per unit