2 | |||||
Contribution margin per unit | Proposed | ||||
Sales | 38.30 | per pair | =796640/20800 | ||
Variable costs | 15.32 | per pair | =(637312/20800)*50% | ||
Contribution margin | 22.98 | per pair | |||
Contribution margin ratio | |||||
Choose Numerator | / | Choose Denominator | = | Contribution margin ratio | |
Contribution margin per unit | / | Sales per unit | = | Contribution margin ratio | |
22.98 | / | 38.30 | = | 60% | |
Break even point in dollar sales with new machine | |||||
Choose Numerator | / | Choose Denominator | = | Break even point in Dollars | |
Total fixed costs | / | Contribution margin ratio | = | Break even point in Dollars | |
374000 | / | 60% | = | 623333 | or 623333.33 |
Required Information Problem 5-4A Break-even analysls; Income targeting and forecesting 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...
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