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Required information Problem 18-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 The following information applies to the questions displayed below. Astro Co.

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Required information Problem 18-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 The following information applies to the questions displayed below. Astro Co. sold 20,600 units of its only product and incurred a $55,028 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018's activities, the production manager notes that varlable 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 $156,000. The maximum output capacity of the company is 40,000 units per year ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales Variable cests Contribution margin $784,860 627,888 156,972 212,000 Fixed costs Net loss s (55,e28) Problem 18-4A Part 2 2. Compute the predicted break-even point in dollar sles for year 2018 assuming the machine is installed and there is no change In the unit selling price. (Round your answers to 2 decimal places.) Contribution margin per unit Proposed

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