Astro Co. sold 19,400 units of its only product and incurred a $44,828 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018s 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. 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

$

715,860

Variable costs

572,688

Contribution margin

143,172

Fixed costs

188,000

Net loss

$

(44,828

)

5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume no income taxes will be due. (Do not round intermediate calculations. Round "per unit answers" to 2 decimal places.)

Answer format:

ASTRO COMPANY
Forecasted Contribution Margin Income Statement
For Year Ended December 31, 2018
	$ Per Unit	$
Sales	$36.90
Variable costs
Contribution margin		0
Fixed costs
Income before taxes		0