Astro Co. sold 19,800 units of its only product and incurred a $48,292 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 $148,000. 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		$	738,540
Variable costs			590,832
Contribution margin			147,708
Fixed costs			196,000
Net loss		$	(48,292	)

3. Prepare a forecasted contribution margin income statement for 2018 that shows the expected results with the machine installed. Assume that the unit selling price and the number of units sold will not change, and no income taxes will be due. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.)

738, 548 590,832 147,788 196, 890 $ (48,292) Sales Variable costs Contribution nargin Fixed costs Net loss ces 3. Prepare a forecasted contribution margin Income statement for 2018 that shows th Assume that the unit sellng price and the number of units sold will not change, and n intermedlate calculations. Round your answers to the nearest whole dollar) ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31. 2018 Contribution margin Type here to search