Required information Problem 21-3A (Algo) Break-even analysis; income targeting and strategy...

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Accounting

Required information
Problem 21-3A (Algo) Break-even
analysis; income targeting and strategy
LO C2, A1, P2
[The following information applies to the
questions displayed below.]
Astro Company sold 21,000 units of its only
product and reported income of $84,800 for the
current year. During a planning session for next
year's activities, the production manager notes
that variable costs can be reduced 48% by
installing a machine that automates several
operations. To obtain these savings, the
company must increase its annual fixed costs by
$152,000. Total units sold and the selling price
per unit will not change.
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