ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2015 Sales $1,000,000 Variable costs 800,000 Contribution margin 200,000 Fixed costs 250,000 Net loss $(50,000) Compute the sales level required in both dollars and units to earn $200,000 of targeted pretax income in 2016 with the machine installed and no change in unit sales price. Round answers to whole dollars and whole units. 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. Prepare a Cost-Volume-Profit (CVP) chart for year 2015.
ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2015 Sales $1,000,000 Variable costs 800,000 Contribution margin 200,000 Fixed costs 250,000 Net loss $(50,000) Compute the sales level required in both dollars and units to earn $200,000 of targeted pretax income in 2016 with the machine installed and no change in unit sales price. Round answers to whole dollars and whole units. 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. Prepare a Cost-Volume-Profit (CVP) chart for year 2015.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 8P: The production of a new product required Zion Manufacturing Co. to lease additional plant...
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ASTRO COMPANY
Contribution Margin Income Statement
For Year Ended December 31, 2015
|
Sales |
$1,000,000 |
|
Variable costs |
800,000 |
|
Contribution margin |
200,000 |
|
Fixed costs |
250,000 |
|
Net loss |
$(50,000) |
-
Compute the sales level required in both dollars and units to earn $200,000 of targeted pretax income in 2016 with the machine installed and no change in unit sales price. Round answers to whole dollars and whole units.
-
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. -
Prepare a Cost-Volume-Profit (CVP) chart for year 2015.
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