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7 Required information (The following information applies to the questions displayed below.] Part 3 of 3 10 points Astro Company sold 29,500 units of its
7 Required information (The following information applies to the questions displayed below.] Part 3 of 3 10 points Astro Company sold 29,500 units of its only product and reported income of $234,000 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 $180,000. Total units sold and the selling price per unit will not change. eBook ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($60 per unit) $ 1,770,000 Variable costs ($48 per unit) 1,416,000 Contribution margin 354,000 Fixed costs 120,000 Income $ 234,000 Print 3. Compute the sales level required in both dollars and units to earn $100,000 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: 1 Denominator: Sales dollars required Sales level required in units Numerator: Denominator: Sales units required
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