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Required information [The following information appiies to the questions displayed below] Astro Company sold 27,500 units of its only product and reported income of $67,000
Required information [The following information appiies to the questions displayed below] Astro Company sold 27,500 units of its only product and reported income of $67,000 forthe 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 $144000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($56 per unit) 39 1,375,606 Variable costs ($45 per unit) 1,237,569 Contribution margin 137,569 Fixed costs 79,586 Income $ 67,966 3. Compute the sales level required in both dollars and units to earn $140000 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) 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 dollars required Sales units required 0
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