12 Part 3 of 3 153 points Book Print References Required information Problem 18-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2 [The following information applies to the questions displayed below.) Astro Company sold 24,500 units of its only product and reported income of $210,600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 41% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $159,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($59 per unit) Variable costs ($41 per unit) Contribution margin Fixed costs Income $ 1,445,500 1,004,5001 441,000 230,400 $210,600 Mc Graw Problem 18-3A (Algo) Part 3 3. Compute the sales level required in both dollars and units to earn $290,000 of target income for next year with the machine installed. (Do not round intermedinte calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio" to nearest whole percentage) 8 < Prev 12 of 13 Next > Assignment 12 Lontribution margin Fixed costs Income Part 3 of 1 53 points eBook Print References Mc Graw 441, 230,400 $ 210,600 Saved Problem 18-3A (Algo) Part 3 3. Compute the sales level required in both dollars and units to earn $290,000 of target income for next year with the machine installed. (Do not round intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio" to nearest whole percentage) Sales level required in dollars Numerator: Faxed costs plus target income Denominator: Contribution margin ratio Sales dolars required Sales level required in units Numerator Denominator Sales units required 0 < Prev 12 of 13 Next y Help