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	)

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 decimal places.)

ASTRO COMPANY Contribution Margin Incone Statement For Year Ended Sales Variable costs Contribution nargin Fixed costs Net loss $ 738,548 590,832 147,788 196,600 $ (48,292) 2 Compute the predicted break-even point In dollar sales for year 2018 assuming the machine IsI the unlt selling price. (Round your answers to 2 declmal places) Contribution margin per unit Contribution Margin Ratio Choose Numerator Choose Denominator Margin Ratio = | Contribution mann ratio Break-even point in dollar sales with inew machine 1- Choose Denominator: Break-Even Point in Dollars Break-even point in dolars Choose Numerator: 16 e here to search