Required Information [The following Information applies to the questions displayed below.] Astro Company sold 27,500 units of its only product and reported Income of $67,000 for the 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 $144,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($50 per unit) Variable costs ($45 per unit) Contribution margin Fixed costs Income $ 1,375,000 1,237,500 137,500 70,500 $ 67,000 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 level required in dollars Numerator: Fixed costs plus target income Sales level required in units Numerator: Fixed costs plus target income Denominator: = Sales dollars required Contribution margin ratio 55.00% = $ Denominator: Contribution margin per unit 0 = Sales units required $ 27.50 = 1 units