Required information

Problem $18-3$A $($Static$)$ Break$-$even analysis; income targeting

and strategy LO C$2,$ A$1,$ P$2$

$[$The following information applies to the questions displayed below.$]$

Astro Company sold $20,000$ units of its only product and reported

income of $$25,000$ 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 $$241,000.$ The selling price per unit will not

change.

Problem $18-3$A $($Static$)$ Part $3$

Compute the sales level required in both dollars and units to earn $$208,000$ of target

income for next year with the machine installed.

Answer is complete but not entirely corr