Three part question!

Requlred Information Problem 18-3A (Static) Break-even analysis; income targeting and strategy LO C2, A1, P2 [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 actlvities, the production manager notes that varlable 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 18-3A (Static) Part 1 1. Compute the break-even point in dollar sales for next year assuming the machine is Installed. planning session tor next year s activities, the proauction manager notes that variabie costs can pe reaucea 4 \% 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 18-3A (Static) Part 2 2. Prepare a contribution margin Income statement for next year that shows the expected results with the machine installed. Assume sales are $1,000,000. planning session tor next year s activities, the proauction manager notes that varlabie costs can be reauced 4 U\% 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 18-3A (Static) Part 3 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