! Required information [The following information applies to the questions displayed below.) Astro Company sold 20,500 units of its only product and reported income of $77,400 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 49% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $151,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($51 per unit) $ 1,045,500 Variable costs ($42 per unit) 861,000 Contribution margin 184,500 Fixed costs 107,100 Income $ 77,400 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimal places.) Contribution Margin per unit Proposed Sales $ 51.00 Per unit Variable costs 42.00 Per unit Contribution margin $ 9.00 Per unit Contribution Margin Ratio Numerator: Denominator: = Contribution Margin Ratio Contribution margin per unit / Selling price per unit = Contribution margin ratio 0.00% $ 51.00 = Break-even point in dollar sales with new machine: Numerator: Denominator: II Break-Even Point in Dollars Total fixed costs / Contribution margin ratio 11 Break-even point in dollars 0 2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,045,500. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) X Answer is complete but not entirely correct. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin $ 1,045,500 861,000 184,500 107,100 $ 77,400 Fixed costs Income 3. Compute the sales level required in both dollars and units to earn $210,000 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 nearest whole percentage) Sales level required in dollars Numerator: Denominator: Fixed costs plus target income | Contribution margin ratio = Sales dollars required 0 Sales level required in units Numerator: Fixed costs plus target income Denominator: 1 Contribution margin ratio = = Sales units required 0