Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. astro co. sold 19.000 units of...

Astro Co. sold 19.000 units of...

60.1K

Verified Solution

Question

Accounting

image
image
Astro Co. sold 19.000 units of its only product and incurred a $128,000 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 30% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $140,000. The maximum output capacity of the company is 40,000 units per year tribution Margin Income Statement Yean Ended December 31, 2017 Sales Variable costs Contribution margin Fixed costs $ 760,000 608,600 Compute the sales level required in both dollars and units to earn $100,000 of target pretax income in 2018 with the chine installed and no change in unit sales price. (Do not round intermediate colculations. Round your answers to 2 cimal places. Round "Contribution margin ratio" to nearest whole percentage)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

General Management
1.2K views

Question: When looking at most literature, self-monitoring is considered to always be a good thing. do...

Accounting
1.2K views

Listed below are types of errors or fraud that might occur in financial statements. Although a...

Physics
1.2K views

23 A constant force produces maximum velocity V on the block connected to the spring...

Geometry
1.2K views

10 18 10 2x What is the value of x O 4 8 3 6...

Geometry
1.2K views

Consider the composite area shown below all dimensions in mm Determine the coordinates of the...

Calculus
1.2K views

1 point Consider the universal set U 1 2 3 4 5 6 7 8...

Algebra
1.2K views

Put the numbers into the boxes to represent the sum of the rational expression given...

Accounting
1.2K views

From the e-Activity, recommend at least one improvement in the Websites sales order process you...

Accounting
1.2K views

The River Plant of Carlisle, Incorporated produces a particular metal fixture used in aerospace and...

Accounting
1.2K views

Common stockholders usually have all of the following rights except: Multiple Choice To elect board...

Accounting
1.2K views

A company borrowed $17,000 by signing a 180-day promissory note at 8%. The total interest...

Accounting
1.2K views

Exercise 9-02 Presented below are selected transactions of Blossom Company. Blossom sells in large quantities...