Required information Problem 21-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 The following information applies to the questions displayed below.] Astro Co. sold 19,700 units of its only product and incurred a $59,290 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 40% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $147,000. 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 $ 732, 840 549, 630 183, 210 242, 500 $ (59, 290) Net loss Problem 21-4A Part 4 4.Compute the sales level required in both dollars and units to earn $170,000 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) les level required in dollars Choose Numerator: Choose Denominator:Sales dollars required Fixed costs plus pretax income Contribution margin ratioSales dollars required Sales level required in units Choose Numerator: Choose Denominator:Sales units required ixed costs plus pretax income Contribution margin per unitSales units required Problem 21-4A Part 5 5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume no 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 ales S 37.20 riable costs Contribution margin ixed costs ncome before taxes