Astro Co sold 20,600 units of its only product and incurred a $55,028 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 $156,000 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 $ 784,860 Variable costs 627,888 Contribution margin 156,972 Fixed costs 212,000 Net loss $ (55,028 ) 5 Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4 Assume no income taxes will be due (Do not round intermediate calculations Round per unit answers to 2 decimal places )

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Astro Co. sold 20,600 units of its only product and incurred a $55,028 loss (ignoring taxes) for the current year as shown here. During a

Astro Co. sold 20,600 units of its only product and incurred a $55,028 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 $156,000. 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	$	784,860
Variable costs		627,888
Contribution margin		156,972
Fixed costs		212,000
Net loss	$	(55,028	)

5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume no income taxes will be due. (Do not round intermediate calculations. Round "per unit answers" to 2 decimal places.)