Required Information [The following information applies to the questions displayed below.] Astro Co. sold 19,000 units of its only product and incurred a $128,000 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 $140,000. 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 $760, eee variable costs 688, eee Contribution margin 152, eee Fixed costs 280, eee Net loss $(128, eee) 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.) S Answer is complete but not entirely correct. Contribution Margin per Proposed unit Sales S 40.00 Per unit Variable costs 32.00 * Per unit Contribution margin 8.00 Per unit Contribution Margin Ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin per unit Selling price per unit Contribution margin ratio S 8.00 $ 40.00 20.00% Break-even point in dollar sales with new machine: Choose Numerator: 1 Choose Denominator: Break-Even Point in Dollars Contribution margin Total fixed costs 7 ratio Break-even point in dollars S S 280,000 / 20.00% 1,400,000