Required information [The following information applies to the questions displayed below.] Astro Company sold 24,000 units of its only product and reported income of $174,800 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 42% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $158,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($58 per unit) Variable costs ($39 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. (Round your answers to 2 decimal places.) Contribution Margin Ratio) Numerator: 1 $ 1,392,000 $ 936,000 456,000 281,200 $ 174,000 Proposed Denominator: 0.00 W Contribution Margin Ratio Contribution margin ratio .

Required information [The following information applies to the questions displayed below.] Astro Company sold 24,000 units of its only product and reported income of $174,800 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 42% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $158,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($58 per unit) Variable costs ($39 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. (Round your answers to 2 decimal places.) Contribution Margin Ratio) Numerator: 1 $ 1,392,000 $ 936,000 456,000 281,200 $ 174,000 Proposed Denominator: 0.00 W Contribution Margin Ratio Contribution margin ratio .

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....

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