Burchard Company sold 28,000 units of its only product for $19.40 per unit this year. Manufacturing and selling the product required $286,000 of fixed costs. Its per unit variable costs follow. For the next year, management will use a new material, which will reduce direct materials costs to $1.65 per unit and reduce direct labor costs to $1.15 per unit. Sales, total fixed 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 $23.28 per unit, which would decrease unit sales volume to 26,600 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.)

Required information [The following information applies to the questions displayed below] Burchard Company sold 28,000 units of its only product for $19.40 per unit this year. Manufacturing and selling the product required $286,000 of fixed costs. Its per unit variable costs follow. For the next year, management will use a new material, which will reduce direct materials costs to $1.65 per unit and reduce direct labor costs to $1.15 per unit. Sales, total fixed 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 $23.28 per unit, which would decrease unit sales volume to 26,600 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 1. price. (Round your answers to 2 decimal places.) Check my work mode : This shows what is correct or incorrect for the work you bive For the next year, management will use a new material, which will reduce direct mated For the nextyeas, mansgement Wil use a new material, which wir reduce dircet masect administrative costs per unit will not change, Management is aiso considering rasing which would decrease unit soles volume 1026,600 units. Required: Required: 1. Compute the contribution margin per unit from (a) using the new material and (b) using the price, (Round your answers to 2 decimal places)