Astro Company sold 23,000 units of its only product and reported income of $264,600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 44% by Installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $156,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($56 per unit) Variable costs ($35 per unit) Contribution margin Fixed costs Income $ 1,288,000 805,000 483,000 218,400 $ 264,600 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimal places.) Contribution Margin per unit Proposed Denominator: Contribution Margin Ratio Selling price per unit = Contribution margin ratio Contribution Margin Ratio Numerator: Contribution margin per unit Break-even point in dollar sales with new machine: Numerator: Total fixed costs Denominator: Break-Even Point in Dollars Contribution margin ratio = Break-even point in dollars 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,288.000. (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 0 S 0 ^ 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,288,000. (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