15 Required information Part 1 of 2 (The following information applies to the questions displayed below. 3 points Astro Company sold 29,000 units of its only product and reported income of $37,800 for the current year. During a planning session for next year'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 $141,000. Total units sold and the selling price per unit will not change. eBook Print ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($50 per unit) $ 1,450,000 Variable costs $48 per unit) 1,392,000 Contribution margin 58,000 Fixed costs 20, 200 Income $ 37,800 References 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimal places.) 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimal places.) Proposed Contribution Margin per unit Sales S 50.00 Per unit 48.00 Per unit Variable costs Contribution margin Contribution Margin Ratio S 2.00 Per unit Numerator: 1 Denominator: Contribution Margin Ratio - Contribution margin per unit $ 24.00 1 Selling price per unit / $ Contribution margin ratio 48.00% 50.00 Break-even point in dollar sales with new machine: Numerator: Denominator: = Break-Even Point in Dollars Total fixed costs / Contribution margin ratio 24.00% Break-even point in dollars $ 84,167 $ 20,200 / 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,450,000. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Answer is complete but not entirely correct. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales $ 50 X Variable costs 24 x Contribution margin 26 Fixed costs >> 161,200 $ (161,174) Income