5 Part 2 of 3 10 points eBook Print References 0 Required information Problem 21-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2 [The following information applies to the questions displayed below.] Astro Company sold 27,500 units of its only product and reported income of $67,000 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 $144,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (550 per unit) Variable costs ($45 per unit) Contribution margin Fixed costs Income ASTRO COMPANY Contribution Margin income Statement For Year Endad December 31 Problem 21-3A (Algo) Part 2 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,375,000. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar. Contribution margin $ 1,375,000 1,237,500 $ 0 137,500 70,500 $ 67,000 0

Preulied information Preblem 21:3A (Alge) Breakeven analyds; income targeting and strategy LO C2, A1, P2 Problem 21-3A (Algo) Part 2 sales avs surpipoo Nube De not rourd intermediele caleulations. Round your shiwers to the nearest whole dollar