Jetson Co. sold 19,300 units of its only product and incurred a $54,940 loss (gnoring taxes) for the current year as shown here. During a planning session for year 2012's 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 fioxed costs by $143,000. The maximum output capacity of the company is 40,000 units per year. JETSON COMPANY Contribution Margin Income Statement For Year Ended December 31, 2011 Sales Variable costs 710,240 532,680 Contribution margin Fixed costs 77,560 232,500 Net loss $ (54,940)