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Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year, as shown below. During a

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Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year, as shown below. During a planning session for 2020's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these saving, the company must increase its annual fixed costs by $200,000. The maximum output capacity of the company is 40,000 units per year Contribution Margin income Statement For Year Ended December 31, 2019 1,000,000 Variable Costs 800,000 Contribution Margin 200,000 Fixed Costs 250.000 Net Loss (50,000) REQUIRED: 1 Compute the break-even point in dollar sales for 2019 Fixed Costs Contribution Margin per Unit Per Unit Selling Price Variable Costs Contribution Margin Compute the predicted break-even point in dollar sales for 2020 assuming the machine is installed and there is no change in the unit selling price or units sold from 2019. HINT. Remember to 2 adjust variable costs and fixed costs for the installation of the machine

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