Problem 18-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1

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[The following information applies to the questions displayed below.] Astro Co. sold 19,100 units of its only product and incurred a $63,282 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 $141,000. 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		$	699,060
Variable costs			489,342
Contribution margin			209,718
Fixed costs			273,000
Net loss		$	(63,282	)

Problem 18-4A Part 1

Required: 1. Compute the break-even point in dollar sales for 2019. (Round your answers to 2 decimal places.)

Contribution Margin Per Unit Current Year Contribution Margin Ratio Choose Numerator: Choose Denominator: 1 1 Contribution Margin Ratio Contribution margin ratio Break-Even Point in Dollar Sales: Choose Numerator: Choose Denominator: Break-Even Point in Dollars / Break-even point in dollars