10 Nov During a planning session for year 2012’s activiti
During a planning session for year 2012’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 $150,000. The maximum output capacity of the company is 40,000 units per year.JETSON COMPANY Contribution Margin Income Statement For Year Ended December 31, 2011Sales $ 750,000 Variable costs 600,000 Contribution margin 150,000 Fixed costs 200,000 Net loss $ (50,000)value: 10.00 pointsRequired: 1. Compute the break-even point in dollar sales for year 2011. (Round your intermediate calculations to 2 decimal places. Omit the ‘$’ sign in your response.)
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