Image 1 provides the information background for the questions (images 2 & 3).

Problem 21-6A Analysis of price, cost, and volume changes for contribution margin and net income LO P2, A1 IThe following information apples to the questions displayed below.j This year Bertrond Compony sold 40.000 units of its only product for $25 per unit. Monufocturing ond selling the product required $200,000 of fixed manufacturing costs and $325,000 of fixed selling and administretive costs. Its per unit variable costs follow. Materiel 800 Direct labor (paid on the basis of completed units) 5.00 Variable overheed costs. 1.00 0.50 Variable selling end administrative costs Next year the company will use new moterial, which will reduce material costs by 50% and direct labor costs by 60% and will not affect product quelity or marketability. Management is considering an increase in the unit sales price to reduce the number of units sold because the factory's output is neering its annuel output copacity of 45.000 units. Two plans are being considered. Under plan 1. the company wi keep the price at the current level and sell the same volume as last year. This plan will increase income because of the reduced costs from using the new material. Under plen 2. the company will increase price by 20%. This plan will decrease unit sales volume by 10%. Under both plans 1and 2, the total fixed costs and the variable costs per unit for overhead and for selling and administrative costs will remein the some