QuickHelper

(10)

$20/per page/

About QuickHelper

Levels Tought:
Elementary,High School,College,University,PHD

Expertise:
Accounting,Applied Sciences See all
Accounting,Applied Sciences,Business & Finance,Chemistry,Engineering,Health & Medical Hide all
Teaching Since: May 2017
Last Sign in: 353 Weeks Ago, 2 Days Ago
Questions Answered: 20103
Tutorials Posted: 20155

Education

  • MBA, PHD
    Phoniex
    Jul-2007 - Jun-2012

Experience

  • Corportae Manager
    ChevronTexaco Corporation
    Feb-2009 - Nov-2016

Category > Business & Finance Posted 05 Jun 2017 My Price 10.00

Managerial Accounting

Question description

 

 

Astro Company 

Contribution Margin Income Statement 

For Year Ended Dec. 31, 20115 

Sales - $1,000,000 

variable costs - 800,000 

contribution margin - 200,000 

fixed costs - 250,000 

net loss - $(50,000) 

 Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year as show below. During a planning session for year 2009'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 increase its annual fixed costs by $200,000. The maximum output capacity of the company is 40,000 units per year

All Requirements 1-5 

1. compute the break even point in dollar sales for year 2015. 

2. compute the predicted break even point in dollar sales for year 2016 assuming the machine is in stalled and there is no change in unit sales price. 

3. prepare a forecasted contribution margin income statement for 2016 that shows the expected results with the machine installed. Assume that the unit sales price and the number of units sold will not change and no income taxes will be due. 

4. compute the sales level required in both dollars and units to earn $200,000 of target pretax income in 2016 with the machine installed and no change in unit sales price. round answers to whole dollarsand whole unit, 

5. prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume no income taxes will be due.

 

Answers

QuickHelper
(10)
Status NEW Posted 05 Jun 2017 09:06 PM My Price 10.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k Y-----------ou -----------for----------- us-----------ing----------- ou-----------r w-----------ebs-----------ite----------- an-----------d a-----------cqu-----------isi-----------tio-----------n o-----------f m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l

Not Rated(0)
Relevent Questions