Astro Company sold 2 3 , 0 0 0 units of its only product and reported income
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Question:
Astro Company sold units of its only product and reported income of $ for the current year. During a planning session for next years activities, the production manager notes that variable costs can be reduced by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $ Total units sold and the selling price per unit will not change.
ASTRO COMPANY
Contribution Margin Income Statement
For Year Ended December
Sales $ per unit $
Variable costs $ per unit
Contribution margin
Fixed costs
Income $
Problem A Algo Part
Compute the breakeven point in dollar sales for next year assuming the machine is installed. Round your answers to decimal places.
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