Required: 1. Compute the break-even point in dollar sales for 2019. (Round your answers to 2 decimal places.)
Required: 1. Compute the break-even point in dollar sales for 2019. (Round your answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required:
1. Compute the break-even point in dollar sales for 2019. (Round your answers to 2 decimal places.)
Contribution Margin Per Unit
Current Year
Contribution Margin Ratio
Choose Numerator:
Choose Denominator:
Contribution Margin Ratio
Contribution margin ratio
Break-Even Point in Dollar Sales:
Choose Numerator:
Choose Denominator:
Break-Even Point in Dollars
Break-even point in dollars
![Required information
(The following information applies to the questions displayed below.]
Astro Co. sold 19,500 units of its only product and incurred a $45,700 loss (ignoring taxes) for the current year, as shown
here. During a planning session for year 2020'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 $145,000. The maximum output capacity of the company is 40,000 units per year.
ASTRO COMPANY
Sales
Variable costs
Contribution margin
Fixed costs
Contribution Margin Income Statement
For Year Ended December 31, 2019
$721,500
577,200
144,300
190,000
$(45,700)
Net loss](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5ecd8157-d898-47e6-bfec-2c8e12b883a7%2F7355b435-a1be-4170-953e-0ed98498daeb%2Fp1w1u6p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
(The following information applies to the questions displayed below.]
Astro Co. sold 19,500 units of its only product and incurred a $45,700 loss (ignoring taxes) for the current year, as shown
here. During a planning session for year 2020'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 $145,000. The maximum output capacity of the company is 40,000 units per year.
ASTRO COMPANY
Sales
Variable costs
Contribution margin
Fixed costs
Contribution Margin Income Statement
For Year Ended December 31, 2019
$721,500
577,200
144,300
190,000
$(45,700)
Net loss
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