How do I fill out the chart? can be reduced 40% byinstalling a machine that automates several operations. To obtain these savings, the company must increase its annualfixed costs by $241,000. The selling price per unit will not change.@ 2ASTRO COMPANYContribution Margin Income StatementFor Year Ended December 31Sales ($50 per unit)Variable costs ($40 per unit)Contribution marginFixed costsIncome1. Compute the break-even point in dollar sales for next year assuming the machine is installed.Contribution Margin Per UnitContribution Margin RatioF2W1Break-Even Point in Dollar Sales with New Machine:Numerator:11Numerator:#380F3E11$4♂$ 1,000,000800,000200,000175,000$ 25,000F4ProposedDenominator:Denominator:%LO5< Prev**********F5< C6Contribution Margin RatioContribution margin ratioF6Break-Even Point in DollarsBreak-even point in dollars12 2 3 of 3R T Y&7F7Next >ERANDORU8DIIF8 mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fbb.johnstoncc.ment!Required information[The following information appliestothe questions displayedASTRO COMPANYContribution Margin Income StatementFor Year Ended December 31Sales ($50 per unit)Variable costs ($40 per unit)Contribution marginFixed costsIncomeAstro Company sold 20,000 units of its only product and reported income of $25,000 for the current year. During aplanning session for next year's activities, the production manager notes that variable costs can be reduced 40% byinstalling a machine that automates several operations. To obtain these savings, the company must increase its annualfixed costs by $241,000. The selling price per unit will not change.below.]$ 1,000,000800,000200,000175,000$ 25,000Saved

In accounting, the breakeven point is calculated by dividing the fixed costs of production by the…

fixed costs by $241,000. 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 ($40 per unit) Contribution margin Fixed costs Income Contribution Margin Per Unit 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. Contribution Margin Ratio Numerator: $ 1,000,000 800,000 200,000 175,000 $ 25,000 Break-Even Point in Dollar Sales with New Machine: Numerator: Proposed Denominator: savings, the company must increase Denominator: Contribution Margin Ratio Contribution margin ratio Break-Even Point in Dollars Break-even point in dollars

fixed costs by $241,000. 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 ($40 per unit) Contribution margin Fixed costs Income Contribution Margin Per Unit 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. Contribution Margin Ratio Numerator: $ 1,000,000 800,000 200,000 175,000 $ 25,000 Break-Even Point in Dollar Sales with New Machine: Numerator: Proposed Denominator: savings, the company must increase Denominator: Contribution Margin Ratio Contribution margin ratio Break-Even Point in Dollars Break-even point in dollars

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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