Q. 16

Required Information [The following information applies to the questions displayed below.] Astro Company sold 22,500 units of its only product and reported income of $60,000 for the current year. During a planning session for next year's activities, the production manager notes that varlable costs can be reduced 45% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $155,000. Total units sold and the selling price per unit will not change. Prepare a contribution margin Income statement for next year that shows the expected results with the lachine Installed. Assume sales are $1,237,500. lote: Do not round Intermedlate calculatlons. Round your answers to the nearest whole dollar