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Astro Company sold 28,500 units of its only product and reported income of $57,900 for...

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Accounting

Astro Company sold 28,500 units of its only product and reported income of $57,900 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 $142,000. Total units sold and the selling price per unit will not change.
\table[[\table[[ASTRO COMPANY],[Contribution Margin Income Statement],[For Year Ended December 31]]],[Sales ( $50 per unit),$1,425,000
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