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Astro Company sold 26,500 units of its only product and reported income of $246,000 for the current year. During a planning session for next years

Astro Company sold 26,500 units of its only product and reported income of $246,000 for the current year. During a planning session for next years activities, the production manager notes that variable costs can be reduced 60% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $150,000. Total units sold and the selling price per unit will not change.

ASTRO COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales ($50 per unit) $ 1,325,000
Variable costs ($35 per unit) 927,500
Contribution margin 397,500
Fixed costs 151,500
Income $ 246,000

Compute the sales level required in both dollars and units to earn $160,000 of target income for next year with the machine installed. (Do not round intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio" to nearest whole percentage)

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