Product XT at the break-even point. Problem 18-4A Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current Break-even analysis; year, as shown here. During a planning session for year 2020's activities, the production manager notes income targeting and that variable costs can be reduced 50% by installing a machine that automates several operations. To forecasting obtain these savings, the company must increase its annual fixed costs by $200,000. The maximum output C2 A1 P2 capacity of the company is 40,000 units per year. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales . $1,000,000 Variable costs ...... 800.000 Contribution margin . 200,000 Fixed costs . . . 250,000 Net loss . .. $ (50,000) Required 1. Compute the break-even point in dollar sales for 2019. 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. Check (3) Net income. 3. Prepare a forecasted contribution margin income statement for 2020 that shows the expected results $150,000 with the machine installed. Assume that the unit selling price and the number of units sold will not change, and no income taxes will be due. (4) Required sales, 4. Compute the sales level required in both dollars and units to earn $200,000 of target pretax income in $1,083,333 or 21,667 units 2020 with the machine installed and no change in unit sales price. Round answers to whole dollars and (both rounded) whole units. 5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume no income taxes will be due. Problem 18-5A Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories Break-even analysis, and markets them through different channels. They have no shared costs. This year, the company sold