of 3 L Jook Required information [The following information applies to the questions displayed below] 10 rences Astro Company sold 21,000 units of its only product and reported income of $84,800 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 48% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $152,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31. Sales ($52 per unit) Variable costs ($44 per unit) Contribution margin Fixed costs Income 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,092,000 Note: 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 $ $ 1,092,000 924,000 Required information [The following information applies to the questions displayed below] Sales ($52 per unit) Variable costs ($44 per unit) Contribution margin Fixed costs Income Astro Company sold 21,000 units of its only product and reported income of $84,800 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 48% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $152,000. Total units sold and the selling price per unit will not change. 168,000 83,200 $ 84,800 0 ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales level required in dollars Numerator: Sales level required in units Numerator 3. Compute the sales level required in both dollars and units to earn $220,000 of target income for next year with the machine installed. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio" to nearest whole percentage $ 1,092,000 924,000 168,000 83,200 $ 84,800 Denominator: Denominator: Sales dollars required Sales units required
of 3 L Jook Required information [The following information applies to the questions displayed below] 10 rences Astro Company sold 21,000 units of its only product and reported income of $84,800 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 48% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $152,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31. Sales ($52 per unit) Variable costs ($44 per unit) Contribution margin Fixed costs Income 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,092,000 Note: 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 $ $ 1,092,000 924,000 Required information [The following information applies to the questions displayed below] Sales ($52 per unit) Variable costs ($44 per unit) Contribution margin Fixed costs Income Astro Company sold 21,000 units of its only product and reported income of $84,800 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 48% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $152,000. Total units sold and the selling price per unit will not change. 168,000 83,200 $ 84,800 0 ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales level required in dollars Numerator: Sales level required in units Numerator 3. Compute the sales level required in both dollars and units to earn $220,000 of target income for next year with the machine installed. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio" to nearest whole percentage $ 1,092,000 924,000 168,000 83,200 $ 84,800 Denominator: Denominator: Sales dollars required Sales units required
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6EB: Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit...
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