M Bb (XM Bb M UCSC M iF + C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252... > Ch 5 HW - ACG3073 1 Saved Help Save & Exit Submit Check my work 17 Required information Part 1 of 2 [The following information applies to the questions displayed below.] This year Burchard Company sold 36,000 units of its only product for $16.20 per unit. Manufacturing and 14 selling the product required $121,000 of fixed manufacturing costs and $181,000 of fixed selling and points administrative costs. Its per unit variable costs follow. Material $ 4. 10 eBook Direct labor (paid on the basis of completed units) 3.10 Variable overhead costs 0 . 41 Print Variable selling and administrative costs 0. 21 References Next year the company will use a new material, which will reduce material costs by 70% and direct labor costs by 30% and will not affect product quality or marketability. Management is considering an increase in the unit selling price to reduce the number of units sold because the factory's output is nearing its annual output capacity of 41,000 units. Two plans are being considered. Under plan 1, the company will keep the selling 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 plan 2, the company will increase the selling price by 30%. This plan will decrease unit sales volume by 15%. Under both plans, the total fixed costs and the variable costs per unit for overhead and for selling and administrative costs will remain the same. Required: 1. Compute the break-even point in dollar sales for (a) plan 1 and (b) plan 2. (Round "per unit answers" and "CM ratio" percentage answer to 2 decimal places.) Mc Graw M Bb (XM Bb M UCSC M iF + C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252... * Ch 5 HW - ACG3073 i Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 17 Required: 1. Compute the break-even point in dollar sales for (a) plan 1 and (b) plan 2. (Round "per unit answers" and "CM ratio" percentage answer to 2 decimal places.) Part 1 of 2 x Answer is not complete. Per unit: Plan 1 Plan 2 14 Sales $ points 583,200.00 Variable Costs: Material Direct labor Variable overhead costs Variable S&A costs Total variable costs 0.00 0.00 Contribution margin Plan 1 Contribution Margin Ratio Choose Numerator: 1 Choose Denominator: Contribution Margin Ratio = Contribution margin ratio 0 Break-Even Point in Dollars Mc Graw M Bb (XM Bb M UCSC M iF + C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252... * Ch 5 HW - ACG3073 i Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 17 Required information Part 1 of 2 Plan 1 Contribution Margin Ratio 14 Choose Numerator: Choose Denominator: = Contribution Margin Ratio points = Contribution margin ratio Break-Even Point in Dollars Choose Numerator: 1 Choose Denominator: Break-Even Point in Dollars = Break-even point in dollars Plan 2 Contribution Margin Ratio = Contribution margin ratio 0 Break-Even Point in Dollars = Break-even point in dollars 0 Mc Graw
