Homework Help is Here – Start Your Trial Now!
Business
Accounting
Required information Problem 18-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2 [The following information applies to the questions displayed below] Astro Company sold 24,500 units of its only product and reported income of $210,600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 41% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $159,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($59 per unit) Variable costs ($41 per unit) Contribution margin Fixed costs Income $ 1,445,500 1,004,500 441,000 210,400 $ 210,000 Problem 18-3A (Algo) Part 3 3. Compute the sales level required in both dollars and units to earn $290.000 of target income for next year with the machine installed. (Do not round intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio to nearest whole percentage)

Required information Problem 18-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2 [The following information applies to the questions displayed below] Astro Company sold 24,500 units of its only product and reported income of $210,600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 41% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $159,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($59 per unit) Variable costs ($41 per unit) Contribution margin Fixed costs Income $ 1,445,500 1,004,500 441,000 210,400 $ 210,000 Problem 18-3A (Algo) Part 3 3. Compute the sales level required in both dollars and units to earn $290.000 of target income for next year with the machine installed. (Do not round intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio to nearest whole percentage)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please help me 

12 Part Required information Problem 18-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2 [The following information applies to the questions displayed below.) Astro Company sold 24,500 units of its only product and reported income of $210,600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 41% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $159,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($59 per unit) Variable costs ($41 per unit) Contribution margin Fixed costs Income $1,445,500 1,004,500 441,000 210,400 $ 210,000 Problem 18-3A (Algo) Part 3 3. Compute the sales level required in both dollars and units to earn $290,000 of target income for next year with the machine installed. (Do not round intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio" to nearest whole percentage)
Transcribed Image Text:12 Part Required information Problem 18-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2 [The following information applies to the questions displayed below.) Astro Company sold 24,500 units of its only product and reported income of $210,600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 41% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $159,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($59 per unit) Variable costs ($41 per unit) Contribution margin Fixed costs Income $1,445,500 1,004,500 441,000 210,400 $ 210,000 Problem 18-3A (Algo) Part 3 3. Compute the sales level required in both dollars and units to earn $290,000 of target income for next year with the machine installed. (Do not round intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio" to nearest whole percentage)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS