Required information [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 $1,000,000 Variable costs 800,000 Contribution margin 250.000 (50,000) Sales 200,000 Fixed costs Net loss $ Required: 1. Compute the break-even point in dollar sales for year 2017 Current Contribution Margin Per Unit Sales Variable costs Contribution margin Contribution Margin Ratio Chooso Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio Break-Even Point in Dollar Sales: Choose Numerator: Choose Denominator: Break-Even Point in Dollars Break-even point in dollars 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 Proposed Contribution margin per unit Sales Variable costs Contribution margin Contribution Margin Ratio Choose Numerator Choose Denominator Contribution Margin Ratio Contribution margin ratio Benven Point in Dollar Sales with Now Machine Choose Numerator: Choose Denominator 1 Break-even Point in Dollars Break-even point in dollar