Required information [The following information applies to the questions displayed below] Astro Company sold 20,000 units of its only product and reported income of $25,000 for the current year. During a planning session for next year'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 $241,000. The selling price per unit will not change ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($50 per unit) Variable costs ($40 per unit) Contribution margin Fixed costs Incone $1,000,000 300,000 200,000 175,000 $ 25,000 3. Compute the sales level required in both dollars and units to earn $208,000 of target income for next year with the machine Installed Sales level required in dollars Numerator: Fixed costs plus target income Denominator: Contribution margin rabo Sales dollars required 0 Sales level required in units Numerator: Denominator: Sales units required 0