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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 .

FINANCIAL ACCOUNTING
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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ok ant 5 ences ASTRU CUMPANT 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 $ 174,800 Break-even point in dollar sales with new machine: Numerator: 1 7 Proposed Denominator: Denominator: 0.00 = Contribution Margin Ratio Contribution margin ratio Break-Even Point in Dollars Break-even point in dollars
Transcribed Image Text:ok ant 5 ences ASTRU CUMPANT 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 $ 174,800 Break-even point in dollar sales with new machine: Numerator: 1 7 Proposed Denominator: Denominator: 0.00 = Contribution Margin Ratio Contribution margin ratio Break-Even Point in Dollars Break-even point in dollars
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 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 per unit Contribution Margin Ratio Numerator: 1 $ 1,392,000 936,000 456,000 281,200 $ 174,800 $ Proposed Denominator: Prev 0.00 = 6 Contribution Margin Ratio Contribution margin ratio 3D 7 8 of 10 0 Next >
Transcribed Image Text: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 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 per unit Contribution Margin Ratio Numerator: 1 $ 1,392,000 936,000 456,000 281,200 $ 174,800 $ Proposed Denominator: Prev 0.00 = 6 Contribution Margin Ratio Contribution margin ratio 3D 7 8 of 10 0 Next >
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