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Astro Co. sold 19.000 units of its only product and incurred a $128,000 loss (ignoring taxes) for the current year as shown here. During a
Astro Co. sold 19.000 units of its only product and incurred a $128,000 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018's activities, the production manager notes that variable costs can be reduced 30% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $140,000. The maximum output capacity of the company is 40,000 units per year tribution Margin Income Statement Yean Ended December 31, 2017 Sales Variable costs Contribution margin Fixed costs $ 760,000 608,600 Compute the sales level required in both dollars and units to earn $100,000 of target pretax income in 2018 with the chine installed and no change in unit sales price. (Do not round intermediate colculations. Round your answers to 2 cimal places. Round "Contribution margin ratio" to nearest whole percentage)
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