Aces Incorporated. a manufacturer oftennis rackets, began operations this year. The company produced 6400 rackets and sold 5300. Each racket was sold at a price of $94. Fixed overhead costs are $85,760 for the year. and xed selling and administrative costs are $65,600 for the year. The company also reports the following per unit variable costs for the year: Direct materials 3 1 2 . 12 Direct labor 3 . 12 Variable overhead 5 . 16 Variable selling and administrative expenses 2 . 40 Required: Prepare an income statement under absorption costing. 14 Compute the contribution margin ratio and fixed costs using the following data. Sales $ 5,100 Variable costs $ 3, 009 Income $ 410 oints Contribution Margin eBook Contribution margin Contribution Margin Ratio Numerator: 1 Denominator: Contribution Margin Ratio Hint 1 Contribution margin ratio Print Fixed Cost ReferencesZhao Company has xed costs of $275,600. Its single product sells for $161 per unit. and variable costs are $109 per unit. The company reports sales of 10,000 units. Prepare a contribution margin income statement for the year ended December 31. Required information [The following information appiies to the questions displayed bellow} Burchard Company sold 25,000 units of its only product for $20.00 per unit this year. Manufacturing and selling the product required $280,000 of fixed costs. Its per unit variable costs follow. Direct materials 5 3.00 Direct labor 2 . 00 Variable overhead costs 0.30 Variable selling and administrative costs 0.10 For the next year. management will use a new material, which will reduce direct materials costs to $1.50 per unit and reduce direct labor costs to $1.00 per unit. Sales, total xed costs, variable overhead costs per unit. and variable selling and administrative costs per unit will not change. Management is also considering raising its selling price to $24.00 per unit, which would decrease unit sales volume to 23,750 units. Required: 1. Compute the contribution margin per unit from (a) using the new material and {b} using the new material and increasing the selling price. (Round your answers to 2 decimal places.) Sales price per unit Variable costs per unit Direct materials Variable overhead Required information [The following information applies to the questions displayed below. j Burchard Company sold 25,000 units ofits only product for $20.00 per unit this year. Manufacturing and selling the product required $280,000 of fixed costs. Its per unit variable costs follow. Direct materials 5 3.00 Direct labor 2.00 Variable overhead costs 0.30 Variable selling and administrative costs 0.10 For the next year. management will use a new material, which will reduce direct materials costs to $1.50 per unit and reduce direct labor costs to $1.00 per unit. Sales, total xed costs, variable overhead costs per unit. and variable selling and administrative costs per unit will not change. Management is also considering raising its selling price to $24.00 per unit, which would decrease unit sales volume to 23,750 units. 2. Prepare a contribution margin income statement for next year with two columns showing the expected results of la) using the new material and {b} using the new material and increasing the selling price. Number of units: m 23,750