Astro co. sold 20,500 units of its only product and incurred a $67,750 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 40% by installing a machine that automates several operations. to obtain these savings, the company must increase its annual fixed costs by $155,000. 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 $ 779,000 variable costs 584,250 contribution margin 194,750 fixed costs 262,500 net loss $ (67,750 ) required: 1. compute the break-even point in dollar sales for year 2017. (round your answers to 2 decimal places.)
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