Problem $21-3$A $($Algo$)$ Break$-$even analysis; income targeting and strategy LO C$2,$ A$1,$ P$2$

Skip to question

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

Astro Company sold $29,000$ units of its only product and reported income of $$37,800$ for the current year. During a planning session for next year$$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 $$141,000.$ Total units sold and the selling price per unit will not change.

ASTRO COMPANYContribution Margin Income StatementFor Year Ended December $31$Sales $($$$50$ per unit$)$$ $1,450,000$Variable costs $($$$48$ per unit$)1,392,000$Contribution margin$58,000$Fixed costs$20,200$Income$ $37,800$

Problem $21-3$A $($Algo$)$ Part $1$

$1.$ Compute the break$-$even point in dollar sales for next year assuming the machine is installed.

Note: Round your answers to $2$ decimal places.

Required information

Problem $21-3$A $($Algo$)$ 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 $29,000$ units of its only product and reported income of $\backslash$$$37,800$ for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced $50\backslash \%$ by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $\backslash (\backslash$$ $141,000\backslash ).$ Total units sold and the selling price per unit will not change.

Problem $21-3$A $($Algo$)$ Part $1$

$1.$ Compute the break$-$even point in dollar sales for next year assuming the machine is installed.

Note: Round your answers to $\backslash (\backslash$mathbf$\{2\}\backslash )$ decimal places.

Answer is complete but not entirely correct.