- 7 Part 1 Of 3 Required Information The Following Information Applies To The Questions Displayed Below Astro Company So 1 (34.04 KiB) Viewed 140 times
- 7 Part 1 Of 3 Required Information The Following Information Applies To The Questions Displayed Below Astro Company So 2 (29.44 KiB) Viewed 140 times
7 Part 1 of 3 Required information [The following information applies to the
questions displayed below) Astro
Company sold 22,500 units of its only product and reported income of $60,000 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 45% by installing a machine that automates several operations. To obtain these savings, the
company must increase its annual fixed costs by $155.000 Total units sold and the selling price per unit will not change. ASTRO
COMPANY Contribution Margin Income
Statement For Year Ended December 31 Sales ($55 per unit) $ 1,237,580 Variable costs ($50 per unit) 1,125,000 Contribution margin 112,500 Fixed costs 52,580 Incone $ 60,000 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 Sales Variable costs $ Proposed 1,237,500.00 Per unit 1.125,000.00 Per unit
Fixed costs Income 52,500 $ 60,000 7 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimal places.) Part 1 of 3 Contribution Margin per unit Sales Variable costs Contribution margin Contribution Margin Ratio Numerator Contribution margin per unit Proposed 1.237,500.00 Per unit 1,125,000.00 Per unit 112.500,00 Por unit Denominator: Contribution Margin Ratio Contribution margin ratio Selling price per unit Break-even point in dollar sales with new machine Numerator: Denominator: Break-Even Point in Dollars Break-even point in dollars