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Astro Co. sold 19,700 units of its only product and incurred a $59,290 loss (ignoring taxes) for the current year, as shown here. During a

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Astro Co. sold 19,700 units of its only product and incurred a $59,290 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2020'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 $147,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2019 Sales $732,840 Variable costs 549,630 Contribution margin 183,210 Fixed costs 242,500 Net loss $(59,290) 4. Compute the sales level required in both dollars and units to earn $170,000 of target pretax income in 2020 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 Numerator: Choose Denominator: Sales Units Required Sales units required

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