Problem $5-3$A $($Static$)$ Break$-$even analysis; income targeting and strategy LO C$2,$ A$1,$ P$2$

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Astro Company sold $20,000$ units of its only product and reported income of $$25,000$ for the current year. During a planning session for next year$$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 fixed costs by $$241,000.$ The selling price per unit will not change.