Astro Co. sold 20,100 units of its only product and incurred a $63,560 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2016s activities, the production manager notes that variable costs can be reduced 40% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $151,000. The maximum output capacity of the company is 40,000 units per year.

Astro Co. sold 20,100 units of its only product and incurred a $63,560 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2016's activities, the production manager notes that variable costs can be reduced 40% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $151,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statenent For Year Ended December 31, 2015 Sales Variable costs $755,760 566,820 Contribution margin Fixed costs 188,940 252,500 Net loss S (63,560) value: 10.00 points Required: 1. Compute the break-even point in dollar sales for year 2015. (Round your answers to 2 decimal places.) Contribution Margin Per Unit Current 755,760.00 per pair 566,820.00 per pair 188,940.00 per pair ales riable costs Contribution margin Contribution Margin Ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio n margin per unit Sales per unit Contribution margin ratio 9.40S 27.60 34.06% ak-Even Point in Dollar Sales: Choose Numerator: Choose Denominator: Break-Even Point in Dollars xed costs per unit tribution margin ratioBreak-even point in dollars 252,500/ 0.25% : | 101,000