12 which would decrease unit sales volume to 36,000 units. antota Problem 5-5A (Static) Part 1 Required: 1. Compute the contribution margin per unit from (e) using the new material and (b) using the new material and increasing the selling price. (Round "per unit answers" to 2 decimal places.) ook with new material With new material and price Increase Sales price per unit Variable costs per unit Direct materials Direct labor Variable overhead Variable selling & administrative expenses Variable costs per unit Contribution margin per unit Check 12 Part 1 of 2 5 Required information Problem 5.5A (Static) Contribution margin: income effects of alternative strategies LO C2, A1, P2 The following information applies to the questions displayed below) Burchard Company sold 40.000 units of its only product for $25 per unit this year. Manufacturing and selling the product required $525,000 of fixed costs. Its per unit variable costs follow Direer materialo $ 0.00 Direet inboe 5.00 Variable overhead coats 1.00 Variable ning and administrative conta 0.50 For the next year, management will use a new material, which will reduce direct materials costs to $4,50 per unit and reduce direct lobor costs to $2 per unit. Sales, total foxed costs, variable overhead costs per unit, and variable selling and administrative costs per unit will not change Management is also considering raling its soling price to $30 per unit. which would decrease unit sales volume to 36,000 units about Problem 5-SA (Static) Part 1 Required: 1. Compute the contribution margin per unit from (a) using the new material and using the new material and increasing the selling price. (Round "per unit answers" to 2 decimal places.) Check my wa 13 For the next year, management will use a new material, which will reduce direct materials costs to $4.50 per unit and reduce direct labor costs to $2 per unit. Sales, total fixed costs, variable overhead costs per unit and variable seling and administrative costs per unit will not change Management is also considering raising its selling price to $30 per unit which would decrease unit sales volume to 36,000 units Part 2 of 2 4 Problem 5-5A (Static) Part 2 2. Prepare a contribution margin income statement for next year with two columns showing the expected results of (a) using the new material and (b) using the new material and increasing the selling price BURCHARD COMPANY Contribution Margin Income Statement With new material with new material and price increase 30,000 Number of units 40.000