ok 3 Astro Company sold 24,500 units of its only product and reported income of $210,600...

Transcribed Image Text:

ok 3 Astro Company sold 24,500 units of its only product and reported income of $210,600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 41% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $159,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($59 per unit) Variable costs ($41 per unit) Contribution margin Fixed costs Income $ 1,445,500 1,004,500 441,000 230,400 $ 210,600 nt ences Problem 21-3A (Algo) Part 1 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. Note: Round your answers to 2 decimal places. Contribution margin Contribution Margin Ratio Per unit Numerator: Denominator: Contribution margin per unit I Break-even point in dollar sales with new machine: Numerator: Denominator: = Contribution Margin Ratio = Contribution margin ratio 0 Break-Even Point in Dollars Break-even point in dollars 0 C 2 ok 3 Astro Company sold 24,500 units of its only product and reported income of $210,600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 41% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $159,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($59 per unit) Variable costs ($41 per unit) Contribution margin Fixed costs Income $ 1,445,500 1,004,500 441,000 230,400 $ 210,600 nt ences Problem 21-3A (Algo) Part 1 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. Note: Round your answers to 2 decimal places. Contribution margin Contribution Margin Ratio Per unit Numerator: Denominator: Contribution margin per unit I Break-even point in dollar sales with new machine: Numerator: Denominator: = Contribution Margin Ratio = Contribution margin ratio 0 Break-Even Point in Dollars Break-even point in dollars 0 C 2

Answer rating: 100% (QA)

To compute the breakeven point in dollar sales for next year assuming the ma... View the full answer