What is the new variable cost ?

The following information applies to the questions displayed below) Astro Co. sold 20100 units of its only product and incurred a $63,560 loss (Ignoring tax 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 reduce 40% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $151 000. 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 $755,760 Sales 566,820 Variable costs 188,940 Contribution margin 252,500 Fixed costs Net loss (63,560)