planning session for next year's activities, the production manager notes that variable costs can be reduced 49% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $151,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 of 3 Sales ($51 per unit) 1 42:26 Variable costs ($42 per unit) Contribution margin Fixed costs Income $ 1,045,500 861,000 184,500 107,100 $ 77,400 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,045,500. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Contribution margin Prov of 5 Next
planning session for next year's activities, the production manager notes that variable costs can be reduced 49% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $151,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 of 3 Sales ($51 per unit) 1 42:26 Variable costs ($42 per unit) Contribution margin Fixed costs Income $ 1,045,500 861,000 184,500 107,100 $ 77,400 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,045,500. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Contribution margin Prov of 5 Next
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:planning session for next year's activities, the production manager notes that variable costs can be reduced 49% by
installing a machine that automates several operations. To obtain these savings, the company must increase its annual
fixed costs by $151,000. Total units sold and the selling price per unit will not change.
ASTRO COMPANY
Contribution Margin Income Statement
For Year Ended December 31
of 3
Sales ($51 per unit)
1
42:26
Variable costs ($42 per unit)
Contribution margin
Fixed costs
Income
$ 1,045,500
861,000
184,500
107,100
$ 77,400
2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume
sales are $1,045,500.
Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar.
ASTRO COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Contribution margin
Prov
of 5
Next
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