Answer Happy

Required information [The following information applies to the questions displayed below) Astro Company sold 20,000 units of its only product and reported income of $25,000 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 40% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $241,000. The selling price per unit will not change ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($50 per unit) $ 1,000,000 Variable costs ($40 per unit) 800,000 Contribution margin Fixed costs Income $ 25,000 200,000 175,000 1. Compute the break-even point in dollar sales for next year assuming the machine is installed Contribution Margin Per Unit Proposed Contribution Margin Ratio Numerator: Denominator: Contribution Margin Ratio Contribution margin ratio Break Even Pointin Dollar Sales with Now Machine Numerator: Denominator Break.Even Point in Dollars Break-even point in dollars