Part a
contribution margin per unit = contributed margin/ no of units
= 145432/19600 = 7.42
contribution margin ratio = contribution margin (numerator)/sales(denominator)
= 145432 / 727160 = 2:10
break even point in sales = fixed expenses / contribution margin ratio = 192000/(2/10) = 960000
part b
proposed contribution margin per unit = 727160 - 290864 = 436296/19600 = 22.26
variable cost will be reduced by 50%.hence variable cost per unit = 581728/19600= 29.68
new variable cost = 29.68 less 50% = 14.84x19600 = 290864
contribution margin ratio = contribution /sales = 436296/727160 = 6:10
break even point in sales with new machine = fixed cost / contribution margin ratio
=338000/(6/10)= 563333.33
fixed cost new = 192000 + 146000(new machine)= 338000
Required information Problem 21-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 (The following...
Required information Problem 21-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 (The following information applies to the questions displayed below.) Astro Co. sold 19,600 units of its only product and incurred a $46,568 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...
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 19,300 units of its only product and incurred a $54.940 loss ignoring taxes) for the current year as shown here. During a planning session for year 2020'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...
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 19,200 units of its only product and incurred a $43.072 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...
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 20,000 units of its only product and incurred a $50,000 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...
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 19,300 units of its only product and incurred a $54,940 loss fignoring taxes) for the current year as shown here. During a planning session for year 2020'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...
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 19,400 units of its only product and incurred a $44,828 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...
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...
Required information Problem 21-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 [The following information applies to the questions displayed below] Astro Co. sold 19,600 units of its only product and incurred a $46,568 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...
Required Information Problem 5-4A Break-even analysls; Income targeting and forecesting LO C2, P2, A1 The following Information applies to the questions displayed below Astro Co. sold 20,800 unlts of its only product and Incurred a $56,672 loss (Ignoring taxes) for the current year as shown here. Durlng a planning sesslon for year 2018's activtles, the production manager notes that varlable costs can be reduced 50% by installing a machine that automates several operations. To obtain theGe savings, the company must...
Need help with this accounting problem please. Required information Problem 21-4A 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....