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Required Information Problem 21-3A (Algo) Break-even analysis; Income targeting and strategy LO C2, A1, P2 (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 seling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($50 per unit) $ 1,375,000 VarLable costs (545 per unit) 1, 237, 500 Contribution margin 137,500 Fixed costs 70,500 Income $ 67,000 Problem 21-3A (Algo) Part 2 2. Prepare a contribution margin Income statement for next year that shows the expected results with the machine Installed. Assume sales are $1,375,000. (Do not round Intermediate calculations. Round your answers to the nearest whole dollar) ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin Fored costs Income $ 0 Required Information Problem 21-3A (Algo) Break-even analysis; Income targeting and strategy LO C2, A1, P2 [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 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 (55e per unit) $ 1,375,000 Variable costs (545 per unit) 1,237.500 Contribution margin 137,500 Fixed costs 70,500 Income $ 67,000 Problem 21-3A (Algo) Part 3 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 found 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 0 Sales level required in units Numerator Denominator: Contribution margin per unit Sales units required