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[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)

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[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 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 $153,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement Tor Tear Ended December 31, 2019 Sales $767,340 Variable costs 537, 138 Contribution margin 230,202 309,000 ${78, 798) Tixed costs Net loss Required: 1. Compute the break-even point in dollar sales for 2019. (Round your answers to 2 decimal places.) Contribution Margin Per Unit Current Year es 0.00 Contribution Margin Ratio Choose Numerator Choose Denominator: Contribution Margin Ratio Contribution margina 0 Break-even Point in Dollar Sales Choose Numerator Choose Denominator Break-Even Point in Dollars Break-even point in dollars 2 3 5 of 5 Next > 90 13 A * $ 4 % 5 2 3 6 7 2 W E R T Y U Astro Co. sold 20,300 units of its only product and incurred a $78,798 loss (ignoring taxes) for the current year, as show 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 $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, 2019 Sales $767,340 Variable costs 537, 138 Contribution margin 230,202 Fixed costs 309,000 et loss $(78,798) 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.) Contribution Margin per unit Proposed 0.00 Contribution Margin Ratio Choose Numerator 1 Choose Denominator Contribution Margin Ratio Contribution margin Foto 0 Break-even point in dollar sales with new machine Choose Numeratori Choose Denominator Break-Even Point in Dollars Break-even point in dotas 0 80 V # 3 $ 4 % 5 & 7 2 6 co 8 9 14/ D

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