Required Information Problem 21-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2 [The following Information applies to the questions displayed below.] Astro Company sold 25,000 units of its only product and reported Income of $117,600 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 $149,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($40 per unit) Variable costs ($32 per unit) Contribution margin Fixed costs Income $ 1,000,000 800,000 200,000 82,400 $ 117,600 Problem 21-3A (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 Contribution Margin Ratio Numerator: Denominator: Break-even point in dollar sales with new machine: Numerator: 1 Denominator: Contribution Margin Ratio = Contribution margin ratio Break-Even Point in Dollars = Break-even point in dollars 0