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Required information Problem 05-4A Break-even analysis; Income targeting and forecasting LO C2, P2, A1 [The following information applies to the questions displayed below) Astro Co. sold 20,600 units of its only product and incurred a $55,028 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2020'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 $156,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2019 Sales $784,860 Variable costs 627,888 Contribution margin 156, 972 Fixed costs 212,000 Net loss $(55,028) Problem 05-4A Part 4 4. Compute the sales level required in both dollars and units to earn $260,000 of target pretax income in 2020 with the machine installed and no change in unit sales price. (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 Choose Numerator: ces Choose Denominator: - Sales Dollars Required Sales dollars required Sales level required in units Choose Numerator: Choose Denominator: - Sales Units Required Sales units required

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