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[The following information applies to the questions displayed below.] Astro Company sold 27,500...

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Accounting

[The following information applies to the questions displayed below.]
Astro Company sold 27,500 units of its only product and reported income of $67,000 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 $144,000. 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]]],[\table[[Sales ( $50 per unit)],[Variable costs ( $45 per unit)]],\table[[$1,375,000
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