2 Required information 2 of 3) [The following information applies to the questions displayed below] Save & Exit Submit Check my work ts eBook Print ferences Astro Company sold 23,500 units of its only product and reported income of $186,000 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 43% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $157,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($57 per unit) Variable costs ($37 per unit) Contribution margin Fixed costs Income $ 1,339,500 869,500 470,000 284,000 $ 180,000 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,339,500. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) < Prev 2 3 of 5 Next