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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 2018s 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, 2017

Sales	$796,640
Variable costs	637,312
Contribution margin	159,328
Fixed costs	216,000
Net loss	$(56,672)

Required:

1. Compute the break-even point in dollar sales for year 2017. (Round your answers to 2 decimal places.)