Astro Company sold 20,500 units of its only product and reported income of $77,400 for...
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Astro Company sold 20,500 units of its only product and reported income of $77,400 for the current year. During a planning session for next years activities, the production manager notes that variable costs can be reduced 49% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $151,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement
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