! Required information [The following information applies to the questions displayed below.] Astro Company sold 28,500...
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! Required information [The following information applies to the questions displayed below.] Astro Company sold 28,500 units of its only product and reported income of $57,900 for the current year. During a 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 Contribution Margin Income Statement For Year Ended December 31 Sales ($50 per unit) Variable costs ($47 per unit) Contribution margin Fixed costs Income $ 1,425,000 1,339,500 85,500 27,600 $ 57,900 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 Proposed Contribution Margin Ratio Numerator: 1 Break-even point in dollar sales with new machine: Numerator: Denominator: = Contribution Margin Ratio = Contribution margin ratio Denominator: Break-Even Point in Dollars = Break-even point in dollars ! Required information [The following information applies to the questions displayed below.] Astro Company sold 28,500 units of its only product and reported income of $57,900 for the current year. During a 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 Contribution Margin Income Statement For Year Ended December 31 Sales ($50 per unit) Variable costs ($47 per unit) Contribution margin Fixed costs Income $ 1,425,000 1,339,500 85,500 27,600 $ 57,900 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 Proposed Contribution Margin Ratio Numerator: 1 Break-even point in dollar sales with new machine: Numerator: Denominator: = Contribution Margin Ratio = Contribution margin ratio Denominator: Break-Even Point in Dollars = Break-even point in dollars
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