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Astro Co. sold 15,000 units of its only product and incurred a $40,000 loss (ign

ID: 2421075 • Letter: A

Question

Astro Co. sold 15,000 units of its only product and incurred a $40,000 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2014’s activities, the production manager notes that variable costs can be reduced 30% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $460,000. The maximum output capacity of the company is 40,000 units per year. Compute the predicted break-even point in dollar sales for year 2014 assuming the machine is installed and there is no change in the unit sales price.

Explanation / Answer

It was mentioned that details are shiwn here.

But it is missing. we need info for sales relatred to last year

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