The following information applies to the questions displayed below Astro Co. sold 19,200 units of its only product and incurred a $43,072 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2016'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 $142,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2015 Sales Variable costs $704,640 563,712 Contribution margin Fixed costs 140,928 184,000 Net loss $ (43,072)