Selling price = 790740/40000 | 19.7685 |
Current variable cost per unit = 553518/40000 | 13.83795 |
Revised variable cost per unit = Current variable cost per unit * (1-50%) = 13.83795*(1-50%) | 6.918975 |
Contribution margin per unit = Selling price - Revised variable cost per unit = 19.7685 - 6.918975 | 12.849525 |
Contribution margin ratio = Contribution margin per unit / Selling price = 12.849525 / 19.7685 | 65.0% |
Fixed cost = 321000 + 157000 | 478000 |
Sales level required in dollars | ||||||
Choose numerator : | / | Choose denominator: | = | Sales dollars required | ||
Fixed costs plus pretax income | / | Contribution margin ratio | = | Sales dollars required | ||
748000 | / | 65% | = | 1150769.23 | dollars | |
Sales level required in units | ||||||
Choose numerator : | / | Choose denominator: | = | Sales units required | ||
Fixed costs plus pretax income | / | Contribution margin per unit | = | Sales units required | ||
748000 | / | 12.849525 | = | 58212.27 | units |
[The following information applies to the questions displayed below.] Astro Co. sold 20,700 units of its...
Required information [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 lignoring 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 50% by installing a machine that automates several operations To obtain these savings the company must increase its annual fixed costs by $200,000. The maximum output capacity of...
Required information 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 2020'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 $200,000. The maximum output capacity of...
Required information [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 increase its annual fixed costs by $142,000. The maximum output capacity of...
Required information (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 showni 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 $200,000. The maximum output capacity...
Required information (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 2020'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 $146,000. The maximum output capacity of...
Required information 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 2020'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 $200,000. The maximum output capacity of...
8 Required information Part 1 of 5 [The following information applies to the questions displayed below Astro Co. sold 20,000 units of ins only product and incurred a $50,000 loss (gnoring 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 $200000....
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 (The following information applies to the questions displayed below) Astro Co. sold 19,700 units of Its only product and incurred a $59,290 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018's activities, the production manager notes that varlable costs can be reduced 40% by iInstalling a machine that automates several operations. To obtain these savings, the company must Increase Its annual fixed costs by $147,000. The maximum output capacity of...
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...