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

Astro Company sold $29,500$ units of its only product and reported income of $$234,000$ for the current year. During a planning session for next year$$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 $$180,000.$ Total units sold and the selling price per unit will not change.

ASTRO COMPANY

Contribution Margin Income Statement

For Year Ended December $31$

Sales $($$$60$ per unit$)$ $ $1,770,000$

Variable costs $($$$48$ per unit$)1,416,000$

Contribution margin $354,000$

Fixed costs $120,000$

Income $ $234,000$