Answer Happy

Required information (The following information applies to the questions displayed below.) Astro Company sold 25,000 units of its only product and reported income of $117,600 for the current year. During a planning session for next year'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 $149,000. Total units sold and the selling price per unit will not change ASTRO COMPANY Contribution Margin Income Statenent For Year Ended December 31 Sales (840 per unit) $ 1,000,000 Variable costs (532 per unit) Contribution margin Fixed costs Income 800,000 200,000 82,400 $ 117,600 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,000,000. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) ASTRO COMPANY Contribution Margin income Statement For Year Ended December 31 Contribution margin