Question
In: Accounting
Required information [The following information applies to the questions displayed below.] Astro Co. sold 20,900 units...
Required information [The following information applies to the questions displayed below.] Astro Co. sold 20,900 units of its only product and incurred a $71,860 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018’s activities, the production manager notes that variable costs can be reduced 40% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $159,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales $ 802,560 Variable costs 601,920 Contribution margin 200,640 Fixed costs 272,500 Net loss $ (71,860 ) 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. (Do not round intermediate calculations. Round "per unit answers" to 2 decimal places.)
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Required information [The following information applies to the questions displayed below.] Tyrell Co. entered into the...
Required information [The following information applies to the
questions displayed below.] Tyrell Co. entered into the following
transactions involving short-term liabilities. Year 1 Apr. 20
Purchased $35,500 of merchandise on credit from Locust, terms n/30.
May 19 Replaced the April 20 account payable to Locust with a
90-day, 8%, $35,000 note payable along with paying $500 in cash.
July 8 Borrowed $57,000 cash from NBR Bank by signing a 120-day,
10%, $57,000 note payable. __?__ Paid the amount due on...
Required information [The following information applies to the questions displayed below.] Hemming Co. reported the...
Required information
[The following information applies to the questions
displayed below.]
Hemming Co. reported the following current-year purchases and sales
for its only product.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
Jan.
1
Beginning inventory
220
units
@ $10.80
=
$
2,376
Jan.
10
Sales
190
units
@ $40.80
Mar.
14
Purchase
330
units
@ $15.80
=
5,214
Mar.
15
Sales
280
units
@ $40.80
July
30
Purchase
420
units
@ $20.80
=
8,736
Oct....
Required information [The following information applies to the questions displayed below.] Tyrell Co. entered into the...
Required information [The following information applies to the
questions displayed below.] Tyrell Co. entered into the following
transactions involving short-term liabilities. Year 1 Apr. 20
Purchased $38,000 of merchandise on credit from Locust, terms n/30.
May 19 Replaced the April 20 account payable to Locust with a
90-day, 8%, $35,000 note payable along with paying $3,000 in cash.
July 8 Borrowed $63,000 cash from NBR Bank by signing a 120-day,
10%, $63,000 note payable. __?__ Paid the amount due on...
Required information [The following information applies to the questions displayed below.] Tyrell Co. entered into the...
Required information
[The following information applies to the questions
displayed below.]
Tyrell Co. entered into the following transactions involving
short-term liabilities in 2016 and 2017.
2016
Apr.
20
Purchased $40,250 of merchandise on
credit from Locust, terms n/30. Tyrell uses the perpetual inventory
system.
May
19
Replaced the April 20 account
payable to Locust with a 90-day, $35,000 note bearing 10% annual
interest along with paying $5,250 in cash.
July
8
Borrowed $80,000 cash from NBR Bank
by signing a...
Required information [The following information applies to the questions displayed below.] Tyrell Co. entered into the...
Required information
[The following information applies to the questions
displayed below.]
Tyrell Co. entered into the following transactions involving
short-term liabilities.
Year 1
Apr.
20
Purchased $37,500 of merchandise on credit from Locust, terms
n/30.
May
19
Replaced the April 20 account payable to Locust with a 90-day,
8%, $35,000 note payable along with paying $2,500 in cash.
July
8
Borrowed $51,000 cash from NBR Bank by signing a 120-day, 11%,
$51,000 note payable.
__?__
Paid the amount due on...
Required information [The following information applies to the questions displayed below.] Tyrell Co. entered into the...
Required information [The following information applies to the
questions displayed below.] Tyrell Co. entered into the following
transactions involving short-term liabilities. Year 1 Apr. 20
Purchased $38,000 of merchandise on credit from Locust, terms n/30.
May 19 Replaced the April 20 account payable to Locust with a
90-day, 8%, $35,000 note payable along with paying $3,000 in cash.
July 8 Borrowed $63,000 cash from NBR Bank by signing a 120-day,
10%, $63,000 note payable. __?__ Paid the amount due on...
Required information [The following information applies to the questions displayed below.] Tyrell Co. entered into the...
Required information
[The following information applies to the questions
displayed below.]
Tyrell Co. entered into the following transactions involving
short-term liabilities.
Year 1
Apr.
20
Purchased $37,500 of merchandise on credit from Locust, terms
n/30.
May
19
Replaced the April 20 account payable to Locust with a 90-day,
8%, $35,000 note payable along with paying $2,500 in cash.
July
8
Borrowed $51,000 cash from NBR Bank by signing a 120-day, 11%,
$51,000 note payable.
__?__
Paid the amount due on...
Required information [The following information applies to the questions displayed below.] Hemming Co. reported the...
Required information
[The following information applies to the questions displayed
below.]
Hemming Co. reported the following current-year purchases and sales
for its only product.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
Jan.
1
Beginning inventory
215
units
@ $10.60
=
$
2,279
Jan.
10
Sales
180
units
@ $40.60
Mar.
14
Purchase
320
units
@ $15.60
=
4,992
Mar.
15
Sales
260
units
@ $40.60
July
30
Purchase
415
units
@ $20.60
=
8,549
Oct....
Required information [The following information applies to the questions displayed below.] Hemming Co. reported the...
Required information
[The following information applies to the questions
displayed below.]
Hemming Co. reported the following current-year purchases and sales
for its only product.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
Jan.
1
Beginning inventory
260
units
@
$12.40
=
$
3,224
Jan.
10
Sales
215
units
@ $42.40
Mar.
14
Purchase
420
units
@ $17.40
=
7,308
Mar.
15
Sales
380
units
@ $42.40
July
30
Purchase
460
units
@ $22.40
=
10,304
Oct....
Required information [The following information applies to the questions displayed below.] Hemming Co. reported the...
Required information
[The following information applies to the questions
displayed below.]
Hemming Co. reported the following current-year purchases and sales
for its only product.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
Jan.
1
Beginning inventory
230
units
@
$11.20
=
$
2,576
Jan.
10
Sales
160
units
@ $41.20
Mar.
14
Purchase
350
units
@ $16.20
=
5,670
Mar.
15
Sales
320
units
@ $41.20
July
30
Purchase
430
units
@ $21.20
=
9,116
Oct....
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