Astro Co. sold 20200 units of its only product and incurred a 51692 loss

Lire lonowing mormation appies w me quesuuris urspayeu velow.) Astro Co. sold 20,200 units of its only product and incurred a $51,692 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 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $152,000. 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 6761,540 Variable costs 609, 232 Contribution margin 152, 308 Fixed costs 204,000 Net loss (51,692) 4. Compute the sales level required in both dollars and units to earn $220,000 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 dollars required = Sales dollars required $ Sales level required in dollars Choose Numerator Choose Denominator: Fixed costs plus pretax income Contribution margin ratio 60.00% Sales level required in units Choose Numerator: Choose Denominator: Fixed costs plus pretax income Contribution margin per unit Sales units required + Sales units required Contribution Margin Income Statement For Year Ended December 31, 2017 Sales 6761, 540 Variable costs 609, 232 Contribution margin 152, 308 Fixed costs 204,000 Net loss $(51,692) 5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume income taxes will be due (Do not round intermediate calculations. Round "per unit answers" to 2 decimal places.) ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 $ Per Unit $ Sales $ 37.70 Variable costs Contribution margin Fixed costs Income taxes 0 0