Required information f3 [The following information applies to the questions displayed below] neip Save & Exit Submit Check my work Astro Company sold 20,000 units of its only product and reported income of $25,000 for the current year. During a plarining 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. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 ces Sales ($50 per unit) Variable costs ($40 per unit) Contribution margin Fixed costs Income $ 1,000,000 500,000 200,000 175,000 $25,000 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. Contribution Margin Per Unit Sales Proposed $ 50 Per unit 3 Next >