2. Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,485,000. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Contribution margin Required information [The following information applies to the questions displayed below.] Astro Company sold 27,000 units of its only product and reported income of $190,300 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 $145,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($55 per unit) Variable costs ($44 per unit) Contribution margin Fixed costs Income $ 1,485,000 1,188,000 297,000 106,700 $ 190,300 1. Compute the break-even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimal places.) Contribution Margin per unit Proposed $ 1,485,000.00 Per unit 1,188,000.00 Per unit Sales Variable costs Contribution margin $ Contribution Margin Ratio Numerator: 297,000.00 Per unit Denominator: = Contribution Margin Ratio Fixed costs per unit = Contribution margin ratio Contribution margin per unit 2,970,000.00 / Break-even point in dollar sales with new machine: Numerator: Denominator: Break-Even Point in Dollars = Break-even point in dollars ! Required information [The following information applies to the questions displayed below.] Astro Company sold 27,000 units of its only product and reported income of $190,300 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 $145,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($55 per unit) Variable costs ($44 per unit) Contribution margin Fixed costs Income $ 1,485,000 1,188,000 297,000 106,700 $ 190,300 3. Compute the sales level required in both dollars and units to earn $150,000 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