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! Required information [ The following information applies to the questions displayed below. ] Astro Co . sold 1 9 , 7 0 0 nits

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Astro Co. sold 19,700nits of its only product and incurred a $59,290 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2020'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 $147,000. The maximum output capacity of the company is 40,000 units per year.
\table[[\table[[ASTRO COMPANY],[Contribution Margin Income Statement],[For Year Ended December 31,2019]]],[Sales,$732,840
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