Required information [The following information applies to the questions displayed below.] Astro Company sold 29,500 units of its only product and reported income of $234,000 for the current year. During a planning session for next year'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 $180,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($60 per unit) Variable costs ($48 per unit) Contribution margin Fixed costs Income Contribution Margin per unit 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 Ratio Numerator: 1 $ $ 1,770,000 1,416,000 354,000 120,000 $ 234,000 Break-even point in dollar sales with new machine: Numerator: I 1 Proposed Denominator: Denominator: 0.00 11 Contribution Margin Ratio Contribution margin ratio 0 = Break-Even Point in Dollars = Break-even point in dollars 0 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,770,000. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Contribution margin $ 0 0