Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You received partial credit in the previous attempt. Required Information Problem 18-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 [The following information

image text in transcribed
image text in transcribed
You received partial credit in the previous attempt. 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 19,700 units of its only product and incurred a $59,290 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 40% by Installing a machine that automates several operations. To obtain these savings, the company must Increase its annual fixed costs by $147,000. The maximum output capacity of the company is 40,000 units per year. ded ASTRO COMPANY Contribution Margin Income statement Tor Year Ended December 31, 2019 Sales $752,640 Variable conta 549,630 Contribution margin 103,210 Fixed conta 242,500 et loss ${59,290) 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 Proposed un Part 2 of 5 Problem 18-4A Part 2 0.55/0.71 points awarded Scored 2. Compute the predicted break-even point in dollar sales for 2020 assuming the machine is installed and there is no change in the unlt selling price. (Round your answers to 2 decimal places.) Contribution Margin por Book Sales Variable costs Contribution margin Contribution Margin Ratlo Proposed 37.20 Por unit 11.18 Per unit 20.04 Per unit References Contribution Margin Ratio Contribution margin ratio 70.00% Choose Numeratori Choose Denominator: Contribution margin per unit Soling price per unit 2004 37 20 Break-even point in dollar sales with new machine Choces Numerator Choose Denominator Total faed costs Contribution margin ratio 380,500 70004 Break Even Point in Dollars Brak even point in dollars $ 560.420 G MacBook Air

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operational Auditing Principles And Techniques For A Changing World

Authors: Hernan Murdock

2nd Edition

1000388247, 9781000388244

More Books

Students also viewed these Accounting questions

Question

Explain why Sheila, not Pete, should make the selection decision.

Answered: 1 week ago