2 k ces Astro Company sold 21 000 units of its only product and reported...
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2 k ces 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 1 Compute the break even point in dollar sales for next year assuming the machine is installed Note Round your answers to 2 decimal places Contribution margin Contribution Margin Ratio Numerator 1 1 1 092 000 924 000 168 000 83 200 84 800 Denominator Break even point in dollar sales with new machine Per unit Contribution Margin Ratio Contribution margin ratio CH
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