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Required information Problem 18-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2 [The following information applies to the questions displayed below) Astro

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Required information Problem 18-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2 [The following information applies to the questions displayed below) Astro Company sold 27,500 units of its only product and reported income of $67.000 for the current year. During a planning session for next year'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 $144.000. Total units sold and the selling price per unit will not change ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (550 per unit) $ 1,375,000 Variable costs ($45 per unit) 1,237, see Contribution margin 137,500 Fixed costs 70,5ee Income $ 67,000 Problem 18-3A (Algo) Part 3 3. Compute the sales level required in both dollars and units to earn $140,000 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) Sales level required in dollars Numerator Denominator: Sales dollars required Sales level required in units Numerator: Denominator: - Salos units required

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