Help please with my Required

1. Compute the break-even point in dollar sales for year 2017.

2. Computer the break-even point in dollar sales for year 2018 assuming the machine is

installed and there is no change in the unit selling price.

3. Prepare a forecasted contribution margin income statement for 2018 that shows the

expected results with the machine installed. Assume that the unit selling price and the

number of units sold will not change, and no income taxes will be due.

4. Compute the sales level required in both dollars and units to earn $200,000 of target

pretax income in 2018 with the machine installed and not change in the unit selling

price. Round answers to whole dollars and whole units.

5. Prepare a forecasted contribution margin income statement that shows the results at

the sales level computed in part 4. Assume no income tax will be due.

CVP Analysis- Homework Handout PROBLEM 21-4A (page 928 in Fundamental Accounting Principles, 23 ed.) 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 by 50% by installing a machine that automates several operations. To obtain 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 800,000 200,000 250,000 . .. . (50,000) Fixed Costs