Boomer Company has reported an operating loss of $40,000 on sales of $20,000. The contribution margin was negative $10,000. The company has proposed the purchase of a new machine. Fixed costs are expected to increase by $10,000 per year. However, variable costs are forecasted to be $15,000 lower than last year’s at the sales level of $20,000.

Required:

Calculate the break-even sales in dollars, if costs behave as predicted and the proposal is accepted.