ation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252F Homework 7 i Saved 4 ! Required information Part 1 of 3 Problem 21-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2 [The following information applies to the questions displayed below.] 3.33 Astro Company sold 28,500 units of its only product and reported income of $57,900 for the current year. During a points planning session for next year'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 $142,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Book Contribution Margin Income Statement For Year Ended December 31 Sales ($50 per unit) $ 1, 425, 000 Variable costs ($47 per unit) 1, 339, 500 Print Contribution margin 85 , 500 Fixed costs 27 , 600 Income $ 57, 900 References Problem 21-3A (Algo) Part 1 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimal places.) Contribution margin Per unit Contribution Margin Ratio Numerator: Denominator: Contribution Margin Ratio Contribution margin ratio Break-even point in dollar sales with new machine: Numerator: Denominator: Break-Even Point in Dollars Break-even point in dollars252F%252FIms.mheducation.com%252Fmghmiddleware%252 Homework 7 i Saved 7 Required information Problem 21-4A (Algo) Break-even analysis, different cost structures, and income calculations LO C2, A1, P2 Part 1 of 3 [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 45,000 3.33 units of each product. Income statements for each product follow. points Carvings Mementos Sales $ 787, 500 $ 787, 500 Variable costs 551 , 250 78 , 750 Contribution margin 236 , 250 708, 750 eBook Fixed costs 111 , 250 583 , 750 Income $ 125, 000 $ 125 , 000 Print Problem 21-4A (Algo) Part 1 References Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) PRODUCT CARVINGS Contribution Margin Ratio Numerator: 1 Denominator: = Contribution margin ratio Break-Even Point in Dollars Numerator: Denominator: Break-even point in dollars 0 PRODUCT MEMENTOS Contribution Margin Ratio = Contribution margin ratio Break-Even Point in Dollars = Break-even point in dollars Prey 7 8 9 of 9 Next >Saved Required information Part 1 of 2 Problem 21-1A (Algo) Measuring costs using high-low method LO P1 [The following information applies to the questions displayed below.] 3.33 points Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold Total Cost 315 , 000 $ 152, 500 160, 000 96 , 250 eBook 260, 000 200, 600 200, 000 95 , 000 285 , 000 196, 500 185 , 000 107, 000 Print 7 365, 000 314, 800 8 265 , 000 146, 750 9 77,000 70 , 000 10 145 , 000 125, 625 References 11 89 , 000 89 , 000 12 95 , 000 86 , 650 Problem 21-1A (Algo) Part 1 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) High-Low method - Calculation of variable cost per unit Cost at highest volume - Cost at lowest volume Highest volume - Lowest volume High-Low method - Calculation of fixed costs Total cost at the highest volume Variable costs at highest volume: Highest volume Variable cost per unit Total variable costs at highest volume Total fixed costs Total cost at the lowest volume Variable costs at lowest volume: Lowest volume Prey 1 2 of 9 Next > Mc%%252FIms.mheducation.com%252Fmghmiddleware Homework 7 i Saved 3 Problem 21-2A (Algo) Contribution margin income statement and contribution margin ratio LO A1 3.33 The following costs result from the production and sale of 4,800 drum sets manufactured by Tight Drums Company for the year ended points December 31. The drum sets sell for $330 each. Variable costs Plastic for casing $ 158 , 400 Wages of assembly workers 470 , 400 Book Drum stands 201, 600 Sales commissions 148 , 800 Fixed costs Taxes on factory 7, 000 Print Factory maintenance 14 , 000 Factory machinery depreciation 74, 000 Lease of equipment for sales staff 14 , 000 In Accounting staff salaries 64, 000 salaries 144 , 000 References Required: 1. Prepare a contribution margin income statement for the year. 2. Compute contribution margin per unit and contribution margin ratio. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For each dollar of sales, how much is left to cover fixed costs and contribute to income? (Round your answer to 2 decimal places.) For each dollar of sales, how much is left to cover fixed costs and contribute to income?