C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252Fmheproduc... Ch 18: Homework - Part 2 0 Saved Help Save & Exit Submit Check my work Part 3 of 3 0.5 points eBook Ask print References Problem 18-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2 [The following information applies to the questions displayed below.] Astro Company sold 29,500 units of its only product and reported income of $234,000 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 $180,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Xncome Statement For Year Ended December 31 Sales ($60 per unit) Variable costs ($48 per unit) Contribution margin Fixed costs Income Problem 18-3A (Algo) Part 3 354,000 120,000 $ 234,000 3. Compute the sales level required in both dollars and units to earn $100,000 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: Sales level required in units Numerator: Denominator: Denominator: - Sales dollars required - Sales units required Next