Problem 5-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2Skip to question

[The following information applies to the questions displayed below.] Astro Company sold 21,000 units of its only product and reported income of $84,800 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 48% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $152,000. Total units sold and the selling price per unit will not change.

ASTRO COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales ($52 per unit)	$ 1,092,000
Variable costs ($44 per unit)	924,000
Contribution margin	168,000
Fixed costs	83,200
Income	$ 84,800

. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed.Assume sales are $1,092,000. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.)