Required information The following information applies to the questions displayed below) Astro Company sold 20,000 units
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Required information The following information applies to the questions displayed below) Astro Company sold 20,000 units
questions displayed below) Astro Company sold 20,000 units of its only product and reported income of $25,000 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 $241.000. The selling price per unit will not change ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (550 per unit) $1,000,000 Variable costs ($40 per unit) 800,000 Contribution margin Fixed costs Income $ 25,000 200,000 175,000 3. Compute the sales level required in both dollars and units to earn $208.000 of target income for next year with the machine installed Salos verequired indoor Numerator Denominator Sales dollars required Salos love required in units Numeraton Denominaron Sales unts required
Required information The following information applies to the