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 27,500 units of its only product and reported income of $67,000 for the current year. During planning session for next year's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $144,000. Total units sold and the selling price per unit will not change ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (550 per unit) $ 1,375,000 Variable costs ($45 per unit) 1,237,500 Contribution margin 137,500 Fixed costs 70,500 Income $ 67,eee 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: Denominator Contribution Margin Ratio Contribution margin ratio Break-even point in dollar sales with new machine: Numerator: 1 Denominator: Break-Even Point in Dollars Break-even point in dollars 1