Astro Co. sold 20,300 units of its only product and incurred a $78,798 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 $153,000. 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	$767,340
Variable costs	537,138
Contribution margin	230,202
Fixed costs	309,000
Net loss	$(78,798)

1. Compute the break-even point in dollar sales for year 2017. (Round your answers to 2 decimal places.)

	Contribution Margin Per Unit		Current
	Sales		$37.80	Per unit
	Variable costs		26.46	Per unit
	Contribution margin		$11.34	Per unit
Contribution Margin Ratio
	Choose Numerator:	/	Choose Denominator:	=	Contribution Margin Ratio
	Contribution margin per unit	/	Sales per unit	=	Contribution margin ratio
					0
Break-Even Point in Dollar Sales:
	Choose Numerator:	/	Choose Denominator:	=	Break-Even Point in Dollars
	Total fixed costs	/	Contribution margin ratio	=	Break-even point in dollars
	$309,000	/			0