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Required information (The following information applies to the questions displayed below.) Astro Company sold 25.000 units of its only product and reported income of
Required information (The following information applies to the questions displayed below.) Astro Company sold 25.000 units of its only product and reported income of $117,600 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 $149,000. Total units sold and the selling price per unit will not change ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($40 per unit) Variable costs ($32 per unit) Contribution margin Fixed costs Income $1,000,000 800,000 200,000 82,400 $117,600 3. Compute the sales level required in both dollars and units to earn $190,000 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 Denominator. Sales dollars required Sales level required in units Numerator: Denominator Sales units required
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