Astro Company sold 28,000 units of its only product and reported income of $161,000 for the current year. During a planning session for next years activities, the production manager notes that variable costs can be reduced 40% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $143,000. 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)	$ 1,568,000
Variable costs ($42 per unit)	1,176,000
Contribution margin	392,000
Fixed costs	231,000
Income	$ 161,000

1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimal places.)