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! Required information [The following information applies to the questions displayed below.) Astro Co. sold 20,700 units of its only product and incurred a $83,778
! Required information [The following information applies to the questions displayed below.) Astro Co. sold 20,700 units of its only product and incurred a $83,778 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 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $157,000. 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 $790, 740 Variable costs 553,518 Contribution margin 237, 222 Fixed costs 321,000 Net loss $ ( 83,778) 4. Compute the sales level required in both dollars and units to earn $270,000 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) Sales level required in dollars Choose Numerator: 1 Choose Denominator: = Sales dollars required = Sales dollars required Sales level required in units Choose Numerator: 1 Choose Denominator: required Sales units required /
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