Homework Answers
Answer -
Step - (1) - Contribution Margin Per Unit -
| Particulars | Explanation | Current year | |
| I. | Sales | Sales / Units sold = $710240 / 19300 units | $36.8 per unit |
| II. | Variable costs | Variable costs / Units sold = $532680 / 19300 units | $27.6 per unit |
| Contribution margin | I - II | $9.2 per unit | |
.
Step - (2) - Contribution Margin Ratio -
| Contribution margin per unit | / | Sales per unit | = | Contribution margin ratio |
|
$9.2 [Calculated in step - (1)] |
/ |
$36.8 [Calculated in step - (1)] |
= |
25% [$9.2 / $36.8] |
.
Step - (3) - Break-Even Point in Dollar Sales -
| Total fixed costs | / | Contribution margin ratio | = | Break-even point in dollars |
|
$232500 [Given in question] |
/ |
25% [Calculated in step - (2)] |
= |
$930000 [$232500 / 25%] |
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Problem 18-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 [The following information applies...
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 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...
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...
Required information Problem 18-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 [The following...
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Required information Problem 21-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 (The following...
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Check my work VI Required information Problem 18-4A Break-even analysis; income targeting and forecasting LO C2,...
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Required Information Problem 5-4A Break-even analysls; Income targeting and forecesting LO C2, P2, A1 The following...
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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 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...
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...
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 19,400 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 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 19,200 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...
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...
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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...
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...
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