Required information Problem 18-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2 [The following information applies to the questions displayed below] Astro Company sold 26,000 units of its only product and reported income of $114,100 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 $147,000. Total units sold and the selling price per unit will not change ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($42 per unit) Variable costs ($35 per unit) Contribution margin Fixed costs Income $ 1,092,000 910,000 182,000 67,900 $114,100 Problem 18-3A (Algo) Part 1 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimal places.) Contribution Margin per unit Proposed $ Contribution Margin Ratio Numerator: Break-even point in dollar sales with new machine: Numerator: 0.00 Denominator: Contribution Margin Ratio Contribution margin ratio 0 Denominator: Break Even Point in Dollars Break-even point in dollars