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# Required information Problem 18-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 [The following...

## Question

###### Required information Problem 18-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 [The following...  Required information Problem 18-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 [The following information applies to the questions displayed below.) Astro Co. sold 20,300 units of its only product and incurred a \$78,798 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by \$153,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales \$ 767,340 Variable costs 537, 138 Contribution margin 230,202 Fixed costs 309,000 Net loss \$(78, 798) Problem 18-4A Part 2 2. Compute the predicted break-even point in dollar sales for year 2018 assuming the machine is installed and there is no change in the unit selling price. (Round your answers to 2 decimal places.) 12 11 < Prey 13 Next > of 17 !!!
Save Problem 18-4A Part 2 of 4 2. Compute the predicted break-even point in dollar sales for year 2018 assuming the machine is installed and there is no char the unit selling price. (Round your answers to 2 decimal places.) Contribution margin per unit Proposed bok \$ 0.00 int Contribution Margin Ratio rences Choose Numerator: 1 Choose Denominator: Contribution Margin Ratio Contribution margin ratio 0 Break-even point in dollar sales with new machine: Choose Numerator: Choose Denominator: = Break-Even Point in Dollars Break-even point in dollars 0 13 12 11 Next > of 17 < Prev w

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