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Astro Co. sold 19,000 units of Its only product and Incurred a $128,000 loss (ignoring taxes) for the current year as shown here. During a

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Astro Co. sold 19,000 units of Its only product and Incurred a $128,000 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018's activities, the production manager notes that variable costs can be reduced 30% by installing a machine that automates several operations. To obtain these savings, the company must Increase Its annual fixed costs by $140,000. The maximum output capacity of the company is 40,000 units per year ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales Variable costs Contribution margin Fixed costs Net loss $ 760,eee 608,eee 152,eee 28,eee $ (128,eee) Problem 18-4A Part 2 2. Compute the predicted break-even point In dollar sales for year 2018 assuming the machine Is Installed and there is no change In the unit selling price. (Round your answers to 2 declmal places.) Contribution margin per unit Proposed Contribution Margin Ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio - Contribution margin ratio reak-even point in dollar sales with new machine: Choose Numerator: Choose Break-Even Point in Dollars - Break-even point in dollars

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