$9$

Required information

Problem $18-3$A $($Static$)$ Break$-$even analysis; income targeting and strategy LO C$2,$ A$1,$ P$2$

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

Astro Company sold $20,000$ units of its only product and reported income of $$25,000$ for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced $40\%$ by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $$241,000.$ The selling price per unit will not change.

$\backslash$table$[[\backslash$table$[[$ASTRO COMPANY$],[$Contribution Margin Income$],[$For Year Ended Decembe$]],\backslash$table$[[$statement$],[$r $31]]],[$Sales $($$$50$ per unit$),$$$1,000,00$