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Required information [The following information applies to the questions displayed below.] Astro Co. sold 20,300 units of its only product and incurred a $78,798 loss

Required information

[The following information applies to the questions displayed below.]

Astro Co. sold 20,300 units of its only product and incurred a $78,798 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 $153,000. 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 $ 767,340
Variable costs 537,138
Contribution margin 230,202
Fixed costs 309,000
Net loss $ (78,798 )

Required:

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

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