L020-4 through LO20-7, LO20.9 PROBLEM 20.6A Analyzing the Effects of Changes in Costs Precision Systems manufactures CD burners and currently sells 18,500 units annually to producers of laptop computers. Jay Wilson, president of the company, anticipates a 15 percent increase in the cost per unit of direct labor on January 1 of next year. He expects all other costs and expenses to remain unchanged. Wilson has asked you to assist him in developing the information he needs to formulate a reasonable product strategy for next year You are satisfied that volume is the primary factor affecting costs and expenses and have separated the semivariable costs into their fixed and variable segments. Beginning and ending inventories remain at a level of 1,000 units. Current plant capacity is 20,000 units. Below are the current-year data assembled for your analysis Salee price per unit Variabls costs per unit: $100 Direct materials Direct labor Manufacturing overhead and selling and administrative $10 20 30 60 $ 40 $390,000 expense8 Contribution margin per unit (40%) Fied coets