- 00 8 Part 2 Of 2 Required Information The Following Information Applies To The Questions Displayed Below Astro Company 1 (33.86 KiB) Viewed 100 times
- 00 8 Part 2 Of 2 Required Information The Following Information Applies To The Questions Displayed Below Astro Company 2 (24.93 KiB) Viewed 100 times
00 8 Part 2 of 2 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) $ 1,237,500 Variable costs ($50 per unit) 1.125,000 Contribution margin 112,560 Fixed costs 52,580 Income $ 60,000 2. Prepare a contribution margin income
statement for next year that shows the expected results with the machine installed. Assume sales are $1.237.500. (Do not round intermediate calculations. Round your answers to the nearest whole dollar) ASTRO
COMPANY Contribution Marain Income
Statement
00 8 Sales ($55 per unit) Variable costs ($50 per unit) Contribution margin Fixed costs Income $ 1,237,500 1,125,000 112,500 52,580 $ 60,000 Part 2 of 3 2. Prepare a contribution margin income
statement for next year that shows the expected results with the machine Installed. Assume sales are $1.237.500. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) ASTRO
COMPANY Contribution Margin Income
Statement For Year Ended December 31 Contribution margin 0 $ 0