Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help i will like the answer, thanks ! Contribution margin Fixed costs Income Sales Variable costs Required information [The following information applies to the

image text in transcribed

please help i will like the answer, thanks !

  • Contribution margin
  • Fixed costs
  • Income
  • Sales
  • Variable costs
Required information [The following information applies to the questions displayed below.] Burchard Company sold 34,000 units of its only product for $18.20 per unit this year. Manufacturing and selling the product required $298,000 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 $1.95 per unit and reduce direct labor costs to $1.45 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 $21.84 per unit, which would decrease unit sales volume to 32,300 units. 2. Prepare a contribution margin income statement for next year with two columns showing the expected results of (a) using the nel material and (b) using the new material and increasing the selling price

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Winning Your Audit

Authors: Holmes F. Crouch

1st Edition

0945339151, 978-0945339151

More Books

Students also viewed these Accounting questions