Astro Company sold 27,500 units of its only product and reported income of $67,000 for the current year. During a planning session for next years 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 $144,000. Total units sold and the selling price per unit will not change.

ASTRO COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales ($50 per unit)	$ 1,375,000
Variable costs ($45 per unit)	1,237,500
Contribution margin	137,500
Fixed costs	70,500
Income	$ 67,000

1. Compute the break-even point in dollar sales for next year assuming the machine is installed.

Note: Round your answers to 2 decimal places.

Can I get assistance in solving?

\begin{tabular}{|c|c|c|c|c|} \hline Contribution margin & Per unit \\ \hline \multicolumn{2}{|c|}{ Contribution Margin Ratio } & & & \\ \hline Numerator: & 1 & Denominator: & = & Contribution Margin Ratio \\ \hline Total fixed costs & 1 & Contribution margin per unit & = & Contribution margin ratio \\ \hline & & & & \\ \hline \multicolumn{2}{|c|}{ Break-even point in dollar sales with new machine: } & & \\ \hline Numerator: & 1 & Denominator: & & Break-Even Point in Dollars \\ \hline Total fixed costs & 1 & Contribution margin ratio & = & Break-even point in dollars \\ \hline \multicolumn{2}{|c|}{} & & \\ \hline \end{tabular}