Required information Problem 18-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 The following information applies to the questions displayed below.] Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year as showrn 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 $200,000. 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 Variable costs Contribution margin Fixed costs Net loss $1,000,000 800,000 200,000 250,000 $(50,000) Problem 18-4A Part 4 4. Compute the sales level required in both dollars and units to earn $200,000 of target pretax income in 2018 with the machine installed and no change in unit sales price Answer is not complete. ales level required in dollars Sales Dollars Choose Numerator: Choose Denominator: Fixed costs plus pretax income Sales dollars Contribution margin ratio ired ales level required in units Sales Units Choose Numerator: Choose Denominator: Fixed costs plus pretax ncome Contribution margin per unit Sales units required