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pls anwser all Required Information [The following information applies to the questlons displayed below.] Burchard Company sold 40,000 units of its only product for $17.00
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Required Information [The following information applies to the questlons displayed below.] Burchard Company sold 40,000 units of its only product for $17.00 per unit this year. Manufacturing and selling the product required $310,000 of fixed costs. Its per unit variable costs follow. For the next year, management will use a new material, which will reduce direct materlals costs to $2.25 per unit and reduce direct labor costs to $1.75 per unit. Sales, total fixed costs, varlable overhead costs per unit, and varlable selling and administrative costs per unit will not change. Management is also considering raising its selling price to $20.40 per unit, which would decrease unit sales volume to 38,000 units. equired: Compute the contribution margin per unit from (a) using the new materlal and (b) using the new materlal and increasing the selling rice. (Round your answers to 2 decimal places.) Requlred Informatlon [The following information applies to the questions displayed below.] Burchard Company sold 40,000 units of its only product for $17.00 per unit this year. Manufacturing and selling the product required $310,000 of fixed costs. Its perunit variable costs follow. For the next year, management will use a new material, which will reduce direct materials costs to $2.25 per unit and reduce direct labor costs to $1.75 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 $20.40 per unit, which would decrease unit sales volume to 38,000 units. 2. Prepare a contribution margin income statement for next year with two columns showing the expected results of (a) using the new naterial and (b) using the new material and increasing the selling priceStep by Step Solution
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