Required information [The following information applies to the questions displayed below.] Astro Company sold 27,000 units of its only product and reported income of $190,300 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 $145,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($55 per unit) $ 1,485,000 Variable costs ($44 per unit) 1,188,000 Contribution margin 297,000 Fixed costs 106,700 Income $ 190,300 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 per unit Proposed Contribution Margin Ratio Numerator: 1 Denominator: Contribution Margin Ratio 1 Contribution margin ratio Break-even point in dollar sales with new machine: Numerator: Denominator: = Break-Even Point in Dollars Break-even point in dollars 1 = ! Required information [The following information applies to the questions displayed below.) Astro Company sold 27,000 units of its only product and reported income of $190,300 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 $145,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($55 per unit) $ 1,485,000 Variable costs ($44 per unit) 1,188,000 Contribution margin 297,000 Fixed costs 106,700 Income $ 190,300 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,485,000. (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