Astro Co. sold 19,300 units of its only product and incurred a $54,940 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018s 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 $143,000. The maximum output capacity of the company is 40,000 units per year.

ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017
Sales		$	710,240
Variable costs			532,680
Contribution margin			177,560
Fixed costs			232,500
Net loss		$	(54,940	)

4. Compute the sales level required in both dollars and units to earn $130,000 of target pretax income in 2018 with the machine installed and no change in unit sales price. (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 Choose Numerator: Choose Denominator: = Sales dollars required Sales dollars required Fixed costs plus pretax incomeContribution margin ratio 55.00%) = 1 $ Sales level required in units Choose Numerator: Choose Denominator: = Sales units required Fixed costs plus pretax income Contribution margin per unitSales units required 1 units 20.24 =