Problem 18-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2 [The following information applies to the questions displayed below.] Astro Company sold 27,500 units of its only product and reported income of $67,000 for the current year. During a planning session for next year's 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 $144,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($50 per unit) Variable costs ($45 per unit) Contribution margin Fixed costs Income $1,375,000 1,237,500 137,500 70,500 $ 67,000 Problem 18-3A (Algo) Part 1 Contribution Margin per unit Proposed Contribution Margin Ratio Numerator: Break-even point in dollar sales with new machine: Numerator: Denominator: Contribution Margin Ratio Contribution margin ratio Denominator: Break-Even Point in Dollars Break-even point in dollars (Round your answers to 2 dec