9 Part 1 of 3 4 points Required information Problem 5-3A (Static) Break-even analysis; income targeting and strategy LO C2, A1, P2 [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 ($50 per unit) $ 1,000,000 Variable costs ($40 per unit) 800,000 Contribution margin 200,000 Fixed costs 175,000 Income $ 25,000 eBook Print Check my 10 Tee Year Ended December 31 sales 1550 per unit) 5 1.000.000 Variable costs $40 per unit 800.000 Contestation margin 200,000 Tixed cost 175,009 Taco $ 25,000 Part 2 of 4 po Problem 5-3A (Static) Part 2 2. Prepare a contribution marcin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,000,000 ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Contribution margin 11 Required information Part 3 Problem 5-3A (Static) Part 3 3. Compute the sales levet required in both dollars and units to earn $200,000 of target income for next year with the machine Installed 5 pont Salus level required in dollars Numerator Denominator: Prin Sales dollars required Sales levet required in units Numerator Denominator Sales units required