Astro Company sold 20,000 units of its only product and reported income of $25,000 for the...

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Astro Company sold 20,000 units of its only product and reported income of $25,000 for the current year. During a planning session for next year'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 $241,000. The selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($50 per unit) Variable costs ($40 per unit) Contribution margin Fixed costs Income $1,000,000 800,000 200,000 175,000 $ 25,000 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. Contribution margin Contribution Margin Ratio Punit Numerator: Denominator: Contribution margin per unit Selling price per unit Contribution Margin Ration Contribution margin ratio $ 26/ 50 52% Break Even Point in Dollar Sales with New Machine: Numerator: Denominator: Break Even Point in Dollars Astro Company sold 28,000 units of its only product and reported income of $161,000 for the current year. During a planning session for next year'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 $143,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($56 per unit) Variable costs ($42 per unit) Contribution margin Fixed costs Income $ 1,568,000 1,176,000 392,000 231,000 $161,000 1. Compute the break-even point in dollar sales for next year assuming the mach Note: Round your answers to 2 decimal places. ontribution margin Contribution Margin Ratio Per unit installed. Numerator: Denominator: Contribution Margin ontribution margin per unit Selling price per unit B Contribution margin r reak-even point in dollar sales with new machine: Numerator: ital fixed costs Denominator: Break-Even Point in D Contribution margin ratio Break-even point in do Astro Company sold 20,000 units of its only product and reported income of $25,000 for the current year. During a planning session for next year'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 $241,000. The selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($50 per unit) Variable costs ($40 per unit) Contribution margin Fixed costs Income $1,000,000 800,000 200,000 175,000 $ 25,000 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. Contribution margin Contribution Margin Ratio Punit Numerator: Denominator: Contribution margin per unit Selling price per unit Contribution Margin Ration Contribution margin ratio $ 26/ 50 52% Break Even Point in Dollar Sales with New Machine: Numerator: Denominator: Break Even Point in Dollars Astro Company sold 28,000 units of its only product and reported income of $161,000 for the current year. During a planning session for next year'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 $143,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($56 per unit) Variable costs ($42 per unit) Contribution margin Fixed costs Income $ 1,568,000 1,176,000 392,000 231,000 $161,000 1. Compute the break-even point in dollar sales for next year assuming the mach Note: Round your answers to 2 decimal places. ontribution margin Contribution Margin Ratio Per unit installed. Numerator: Denominator: Contribution Margin ontribution margin per unit Selling price per unit B Contribution margin r reak-even point in dollar sales with new machine: Numerator: ital fixed costs Denominator: Break-Even Point in D Contribution margin ratio Break-even point in do