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[The following information applies to the questions displayed below.] Astro Co. sold 20,700 units of its only product and inc

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Answer #1
Selling price = 790740/40000 19.7685
Current variable cost per unit = 553518/40000 13.83795
Revised variable cost per unit = Current variable cost per unit * (1-50%) = 13.83795*(1-50%) 6.918975
Contribution margin per unit = Selling price - Revised variable cost per unit = 19.7685 - 6.918975 12.849525
Contribution margin ratio = Contribution margin per unit / Selling price = 12.849525 / 19.7685 65.0%
Fixed cost = 321000 + 157000 478000
Sales level required in dollars
Choose numerator : / Choose denominator: = Sales dollars required
Fixed costs plus pretax income / Contribution margin ratio = Sales dollars required
748000 / 65% = 1150769.23 dollars
Sales level required in units
Choose numerator : / Choose denominator: = Sales units required
Fixed costs plus pretax income / Contribution margin per unit = Sales units required
748000 / 12.849525 = 58212.27 units
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