Answer Happy

Required information The following information applies to the 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