! Required information (The following information applies to the questions displayed below.] Astro Company sold 24,000 units of its only product and reported income of $174,800 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 42% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $158,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($58 per unit) $ 1,392,000 Variable costs ($39 per unit) 936,000 Contribution margin 456,000 Fixed costs 281,200 Income $ 174,800 3. Compute the sales level required in both dollars and units to earn $280,000 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) Answer is complete but not entirely correct. Sales level required in dollars Numerator: Denominator: = Contribution margin ratio 32.76% X Sales dollars requir $2,195,360 / Fixed costs plus target income $ 719,200 Sales level required in units Numerator: / = Denominator: Contribution margin per unit $ 19.00 X = Fixed costs plus target income $ 719,200 Sales units required 37,853 uni 1 =