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 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018'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 $200,000. 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 costs Contribution margin Fixed costs Net loss $1,000,000 800,000 200,000 250,000 $(50,000) Problem 18-4A Part 2 2. Compute the predicted break-even point in dollar sales for year 2018 assuming the machine is installed and there is no change in the unit selling price Answer is not complete. Contribution margin Sales Variable costs Contribution margin Per Per Per 50 50 Contribution Margin Ratio Contribution Margin Choose Numerator: Choose Denominator: Contribution margin per unit /Sales per unit Contribution margin ratio reak-Even Point in Dollar Sales with New Machine: Break-Even Point in Choose Numerator: Choose Denominator:- Contribution margin ratio Total fixed costs Break-even point in dollars 250,000