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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
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 2018'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 $143,000. The maximum output capacity of the company is 40,000 units per year ASTRO COMP Contribution Margin Income Statement Year Ended December 31, 2817 Sales Variable costs Contribution margin Fixed costs Net loss 718,246 532,688 77,566 232,580 s(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 neerest whole percentage Sales level required in dollars Choose Numerator Choose Denominator: Sales dollars requi Sales dollars required Sales level required in units Choose Numerator: Choose Denominator:. Sales units required Sales units required Prev78 f10 Next heip Save Net loss s (54,948) 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 Sales level required in units | | Choose Denominator: i-Sales units required s Sales units required Choose Numerator
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