Burchard Company sold $34,000$ units of its only product for $$18\mathrm{.}20$ per unit this year. Manutacturing and selling the product required $$298,000$ of fixed costs. Its per unit variable costs follow.

Direct materials

Direct labor

Variable overhead costs

Variable selling and administrative costs

$$3\mathrm{.}90$

$2\mathrm{.}90$

$0\mathrm{.}39$

$0\mathrm{.}19$

For the next year, management will use a new material, which will reduce direct materials costs to $$1\mathrm{.}95$ per unit and reduce direct labor costs to $$1\mathrm{.}45$ 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 $$21\mathrm{.}84$ per unit, which would decrease unit sales volume to $32,300$ units.

Problem $18-5$A $($Algo$)$ Part $1$

Required:

Compute the contribution margin per unit from

$($a$)$ using the new material and

$($b$)$ using the new material and increasing the selling price.

Note: Round your answers to $2$ decimal places.

$\backslash$table$[[,$With new material,$\backslash$table$[[$With new material$],[$and price$],[$increase$]]],[$Sales price per unit,,$],[$Variable costs per unit,,$],[$Direct materials,,$],[$Direct labor,,$],[$Variable overhead,,$],[$Variable selling & administrative expenses,$$,0\mathrm{.}00],[$Variable costs per unit,,$],[$Contribution margin per unit,,$]]$