Astro Company sold 23,000 units of its only product and reported Income of $264,600 for the...

  

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Astro Company sold 23,000 units of its only product and reported Income of $264,600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 44% by Installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $156,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($56 per unit) Variable costs ($35 per unit) Contribution margin Fixed costs Income $ 1,288,000 805,000 483,000 218,400 $ 264,600 1. Compute the break-even point in dollar sales for next year assuming the machine is Installed. (Round your answers to 2 decimal places.) Astro Company sold 23,000 units of its only product and reported Income of $264,600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 44% by Installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $156,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($56 per unit) Variable costs ($35 per unit) Contribution margin Fixed costs Income $ 1,288,000 805,000 483,000 218,400 $ 264,600 1. Compute the break-even point in dollar sales for next year assuming the machine is Installed. (Round your answers to 2 decimal places.)

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