loss (ignoring taxes) for the Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignori rent year as shown here. During a planning session for year 2016's activities notes that variable costs can be reduced 50% by installing a machine that auto production m To oblain these savings, the company must increase its annual fixed costs by $2000 ril o output capacity of the company is 40,000 units per yea ysis; and . ANY Statement Fot Year Enar d Dicember 31. 2015 $1,000,000 800,000 Sales Contribution margin Fixed costs Net loss ..__._ . 250,000 .. (50,000) Required 1. Compute the break-even point in dollar sales for year 2015. 2. Compute the predicted break-even point in dollar sales for year 2016 assuming the machine is t stalled and there is no change in the unit selling price. me, 3. Prepare a forecasted contribution margin income statement for 2016 that shows the expected resl with the machine installed. Assume that the unit selling price and the number of units soldwll change, and no income taxes will be due. 4. Compute the sales level required in both dollars and units to earn $200,000 of target preaxila o whole dollas a at the sales led sales. 2016 with the machine installed and no change in unit sales price. Round answers to whole units whole units. Prepare a forecasted contribution margin income statement that shows t computed in part 4. Assume no income taxes will be du 5. e results at t