CVP 16

Required information [The following information applies to the questions displayed below.] Astro Company sold 24,500 units of its only product and reported income of $210,600 for the current year, During a planning session for next year's activities, the production manager notes that variable costs can be reduced 41% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $159,000. Total units sold and the selling price per unit will not change. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume ales are $1,445,500. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.)