Required information

Problem $21-3$A $($Algo$)$ Break$-$even

analysis; income targeting and strategy

LO C$2,$ A$1,$ P$2$

$[$The following information applies to the

questions displayed below.$]$

Astro Company sold $21,000$ units of its only

product and reported income of $$84,800$ for the

current year. During a planning session for next

year's activities, the production manager notes

that variable costs can be reduced $48\%$ by

installing a machine that automates several

operations. To obtain these savings, the

company must increase its annual fixed costs by

$$152,000.$ Total units sold and the selling price

per unit will not change.