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  3. astro company sold 22,500 units of its only produc

Astro Company sold 22,500 units of its only product and reported income of $60,000 for...

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Accounting

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Astro Company sold 22,500 units of its only product and reported income of $60,000 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 45% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $155,000. 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) $ 1,237,500 Variable costs ($50 per unit) 1,125,000 Contribution margin 112,500 Fixed costs 52,500 Income $ 60,000 3. Compute the sales level required in both dollars and units to earn $250,000 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 0 Sales level required in units Numerator Denominator Salos units required

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