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2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 ARASIN22227 17 18 19 20 21 23 24 25 26 1) (2) Sales Price per unit Variable Cost per unit Contribution per unit Contribution Margin Ratio Break Even Point Sales in $ Revised Variable Cost Contribution per unit Contribution Margin Ratio Break Even Point Sales in $ = $ 1 000 000,00 / = $ 800 000,00 / = $ =$ B $ $250 000,00 / = $ 50,00 M $ 10,00 / $ 40,00 x $20 000,00 = $20 000,00 $ 40,00 = 50,00 $ $ 450 000,00 / 30,00 / $ 50,00 x $ ss 50% = $ 20,00 = $ 20%= $ 1 250 000,00 50,00 x $ 50,00 40,00 60%= $ 10,00 100 = 20,00 30,00 100,00 750 000,00 W 20% 60% 3) 4 3) Astro Co Contribution Margin Income statement For year ended December 31, 2020 Sales Variable Costs Contribution Margin Fixed Costs Net Income (Loss) $1000 000,00 $ (400 000,00) $ 600 000,00 $ (450 000,00) $ 150 000,00 4) Target Sales in Units $ 450 000,00. $2 000 000,00/ - $ 650 000,00 / 30 $ 21 666,66 Target Sales in 5 = $ 21 666,66 x = $1083 350,00 50 30 Required 1. Compute the break-even point in dollar sales for 2019. 2. Compute the predicted break-even point in dollar sales for 2020 assuming the machine is installed and there is no change in the unit selling price. 3. Prepare a forecasted contribution margin income statement for 2020 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. Check (3) Net income, $150,000 4. Compute the sales level required in both dollars and units to earn $200,000 of target pretax income in 2020 with the machine installed and no change in unit sales price. Round answers to whole dollars and whole units. (4) Required sales, $1,083,333 or 21667 units (both rounded) 5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume no income taxes will be due. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 ARASIN22227 17 18 19 20 21 23 24 25 26 1) (2) Sales Price per unit Variable Cost per unit Contribution per unit Contribution Margin Ratio Break Even Point Sales in $ Revised Variable Cost Contribution per unit Contribution Margin Ratio Break Even Point Sales in $ = $ 1 000 000,00 / = $ 800 000,00 / = $ =$ B $ $250 000,00 / = $ 50,00 M $ 10,00 / $ 40,00 x $20 000,00 = $20 000,00 $ 40,00 = 50,00 $ $ 450 000,00 / 30,00 / $ 50,00 x $ ss 50% = $ 20,00 = $ 20%= $ 1 250 000,00 50,00 x $ 50,00 40,00 60%= $ 10,00 100 = 20,00 30,00 100,00 750 000,00 W 20% 60% 3) 4 3) Astro Co Contribution Margin Income statement For year ended December 31, 2020 Sales Variable Costs Contribution Margin Fixed Costs Net Income (Loss) $1000 000,00 $ (400 000,00) $ 600 000,00 $ (450 000,00) $ 150 000,00 4) Target Sales in Units $ 450 000,00. $2 000 000,00/ - $ 650 000,00 / 30 $ 21 666,66 Target Sales in 5 = $ 21 666,66 x = $1083 350,00 50 30 Required 1. Compute the break-even point in dollar sales for 2019. 2. Compute the predicted break-even point in dollar sales for 2020 assuming the machine is installed and there is no change in the unit selling price. 3. Prepare a forecasted contribution margin income statement for 2020 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. Check (3) Net income, $150,000 4. Compute the sales level required in both dollars and units to earn $200,000 of target pretax income in 2020 with the machine installed and no change in unit sales price. Round answers to whole dollars and whole units. (4) Required sales, $1,083,333 or 21667 units (both rounded) 5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume no income taxes will be due.

Answer rating: 100% (QA)

Requirement 1 Contribution margin pu Selling price per unit 100000020000 Variable cost per unit 8000... View the full answer