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  3. astro co. sold 19,900 units of its only product an

Astro Co. sold 19,900 units of its only product and incurred a $49,148 loss (ignoring...

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Astro Co. sold 19,900 units of its only product and incurred a $49,148 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that autom ates several operations. To obtain these savings, the company must Increase its annual fixed costs by $149,000. The maximum output capacity of the company is 40,000 units per year ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales Variable costs Contribution margin Fixed costs Net loss $ 744,260 595,408 148,852 198,000 $ (49,148) 3. Prepare a forecasted contribution margin income statement for 2018 that shows the expected results with the machine Installed. Assume that the unit selling price and the number of units sold will not change, and no income taxes will be due. (Do not round Intermedlate calculatlons. Round your answers to the nearest whole dollar.) ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 Contribution margin

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