Problem 05-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 [The following information applies to the questions displayed below.] Astro Co. sold 20,300 units of its only product and incurred a $78,798 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2020s 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 $153,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2019 Sales $ 767,340 Variable costs 537,138 Contribution margin 230,202 Fixed costs 309,000 Net loss $ (78,798 ) Problem 05-4A Part 2

2. Compute the predicted break-even point in dollar sales for 2020 assuming the machine is installed and there is no change in the unit selling price. (Round your answers to 2 decimal places.)