Answer Happy

Required information The following information applles 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 200,000 Fixed costs 175.000 Income $ 25,000 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,000,000 ASTRO COMPANY Contribution Margin income Statement For Year Ended Decomber 31 Contribution margin