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Required information (Assessment Problem) 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 19,600 units of its only product and incurred a $46.568 loss (ignoring taxes) for the current year as shown here. During a plannin reduced 50% by nstal in a machine that automates several operations o obtain these savings. the company increase its annual fixed costs by $146.000. The maximum output capacity of the company is 40,000 units per year g session for year 2018s activities. the production manager notes that variable costs can be Contribution Hargin Incone Statenent Sales 145,432 192,000 Contribution margin Fixed costs Net loss s (46,568) Problem 18-4A Part 1 Required 1. Compute the break-even point In dollar sales for year 2017 (Round your answers to 2 decimal places.) Next >
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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.)
Problem 18-4A Part 3 3. Prepare a forecasted contribution margin income statement for 2018 that shows the expected results with the machine inst Assume that the unit selling price and the number of units sold will not o and no income taxes wil be due.(Do not round intermediate calculations. Round your answers to the nearest whole dollor.) ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018
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Problem 18-4A Part 5 5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume ne income taxes will be due. (Do not round intermediate calculations. Round per unit answers to 2 decimal places.) ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 S Per Unit S 37 10 Prey 13of 13
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