Hodge Co. sold 20,800 units of its only product and incurred a $56,672 loss (ignoring taxes)...

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Hodge Co. sold 20,800 units of its only product and incurred a $56,672 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2021'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, Hodge Co. must increase its annual fixed costs by $158,000. The maximum output capacity of the company is 40,000 units per year. HODGE COMPANY Contribution Margin Income Statement For Year Ended December 31, 2020 $ 796,640 637,312 159,328 216,000 $ (56,672) Sales Variable costs Contribution margin Fixed costs Net loss Compute the predicted break-even point in dollar sales for 2021 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 unit Proposed Contribution Margin Ratio Choose Numerator: Contribution Margin Ratio Contribution margin ratio Break-even point in dollar sales with new machine: Choose Numerator: Break-Even Point in Dollars Break-even point in dollars S 0.00 Choose Denominator: Choose Denominator: W Hodge Co. sold 20,800 units of its only product and incurred a $56,672 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2021'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, Hodge Co. must increase its annual fixed costs by $158,000. The maximum output capacity of the company is 40,000 units per year. HODGE COMPANY Contribution Margin Income Statement For Year Ended December 31, 2020 $ 796,640 637,312 159,328 216,000 $ (56,672) Sales Variable costs Contribution margin Fixed costs Net loss Compute the predicted break-even point in dollar sales for 2021 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 unit Proposed Contribution Margin Ratio Choose Numerator: Contribution Margin Ratio Contribution margin ratio Break-even point in dollar sales with new machine: Choose Numerator: Break-Even Point in Dollars Break-even point in dollars S 0.00 Choose Denominator: Choose Denominator: W

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Required 5 Sales Variable cost Contribution margin Fixed costs Income before tax Required 1 Contribu... View the full answer