Blue Company sold 30,000 units of its only product and incurred a $85,000 loss (ignoring taxes)...

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Blue Company sold 30,000 units of its only product and incurreda $85,000 loss (ignoring taxes) for the current year as shown here.During a planning session for year 2020â€™s activities, theproduction manager notes that variable costs can be reduced 25% byinstalling a machine that automates several operations. To obtainthese savings, the company must increase its annual fixed costs by$175,000. The maximum output capacity of the company is 55,000units per year. Blue Company Contribution Margin Income StatementFor Year Ending December 31, 2019 Sales $900,000 Variable $680,000Contribution Margin $220,000 Fixed Cost $305,000 Net Loss $(85,000)Compute the break-even point in dollar sales for year 2019. (Roundyour answers to 2 decimal places.) Compute the predicted break-evenpoint in dollar sales for year 2020 assuming the machine isinstalled and there is no change in the unit selling price. (Roundyour answers to 2 decimal places.)

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1 Compute the breakeven point in dollar sales for year 2019 sales price per unit 900000 30000 30 variable cost per unit 680000 30000 2267 Contribution Per Unit sales price See Answer

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