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Required information The following information applies to the questions displayed below. Astro Co. sold 20,800 units of its only product and incurred a $56,672 loss

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Required information The following information applies to the questions displayed below. Astro Co. sold 20,800 units of its only product and incurred a $56,672 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 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $158,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2019 Sales $796,640 Variable costs 637.312 Contribution margin 159,328 Fixed costs 216,000 Net loss $(56,672) 2. Compute the predicted break-even point in dollar sales for 2020 assuming the machine is installed and there is no change in the unit selling price. (Round your answers to 2 decimal places.) 2. Compute the predicted break-even point in dollar sales for 2020 assuming the machine is installed and there is no change in the unit selling price (Round your answers to 2 decimal places.) Contribution Margin per unit Proposed Contribution Margin Ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio Break-even point in dollar sales with new machine: Choose Numerator: Choose Denominator: Break-Even Point in Dollars Break-even point in dollars

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