Astro Co. sold 20,300 units of its only product and incurred a $78,798 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 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $153,000. 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 $ 767,340 Variable costs 537,130 Contribution margin 230,202 Tixed costs 309,000 Net loss $(78,798) 3. Prepare a forecasted contribution margin Income statement for 2020 that shows the expected results with the machine installed. Assume that the unit selling price and the number of units sold will not change, and no Income taxes will be due. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) ASTRO COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 0 Contribution margin 0 3 4 5 of 5 !! BO 0 F2 % 5 # 3 $ 4 & 7 8 9 6 2 R Y T Astro Co. sold 20,300 units of its only product and incurred a $78,798 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 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $153,000. 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 $767,340 Variable costs 537.138 Contribution margin 230,202 Fixed costs Set loss $78,798) 309,000 4. Compute the sales level required in both dollars and units to earn $230,000 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 del required 0 Sales level required in units Choose Numerator Choose Denominator Sales Un Recured Sales un recured 4 Sels! ** BO # 3 $ 4 & 7 % 5 2 U R T w E K J G H