Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $19,000 per year. The information they will use to consider these changes is shown here.

A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places.

	Current	New Machine
Units Sold	216,000	fill in the blank 1
Sales Price Per Unit	$2.10	$fill in the blank 2
Variable Cost Per Unit	$1.75	$fill in the blank 3
Contribution Margin Per Unit	$0.35	$fill in the blank 4
Fixed Costs	$49,000	$fill in the blank 5
Break-Even (in units)	140,000	fill in the blank 6
Break-Even (in dollars)	$294,000	$fill in the blank 7

B. What will the impact be on net operating income if Flanders purchases the new machinery?

	Current	New Machine
Sales	$453,600	$fill in the blank 8
Variable Costs	378,000	fill in the blank 9
Contribution Margin	$75,600	$fill in the blank 10
Fixed Costs	49,000	fill in the blank 11
Net Income (Loss)	$26,600	$fill in the blank 12