Astro Company sold 22,000 units of its only product and reported income of $70,200 for the current year. During a planning session for next years activities, the production manager notes that variable costs can be reduced 46% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $154,000. Total units sold and the selling price per unit will not change.

ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31

Sales ($54 Per unit)	$1,188,000
Variable Costs ($48 per unit)	$1,056,000
Contribution Margin	$132,000
Fixed Costs	$61,800
Income	$70,200

2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,188,000. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.)

ASTRO COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Contribution margin