Required information Problem 18-3A (Static) Break-even analysis; income targeting and strategy LO...

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Accounting

Required 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 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 18-3A (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

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