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2 Part 2 of 3 Required information Problem 18-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 [The following information applies to the questions displayed below) Astro Co. sold 19,700 units of its only product and incurred a $59,290 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2020'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 $147,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2019 Sales $732,840 Variable costs 549,630 Contribution margin 183, 210 Fixed costs 242,500 Net loss $(59,290) boints Problem 18.4A Part 2 2. Compute the predicted break even point in dollar sales for 2020 assuming the machine is installed and there is no change in the unit selling price. (Round your answers to 2 decimal places.) Contribution Margin per unit Proposed $ 0.00 2 Problem 18-4A Part 2 Part 2 of 3 2. Compute the predicted break-even point in dollar sales for 2020 assuming the machine is installed and there is no change in the unit selling price. (Round your answers to 2 decimal places.) Contribution Margin per unit Proposed 3 points $ 0.00 Contribution Margin Ratio Choose Numerator: 1 Choose Denominator: Contribution Margin Ratio 1 Contribution margin ratio 0 Break-even point in dollar sales with new machine: Choose Numerator: Choose Denominator: 1 Break-Even Point in Dollars Break-even point in dollars 0

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