Required information Problem 18-5A (Algo) Contribution margin; income effects of alternative strategies LO C2, A1, P2 [The following information applies to the questions displayed below] Burchard Company sold 30,000 units of its only product for $1900 per unit this year. Manufacturing and 5 elling the product required $290.000 of fixed costs. Its per unit variable costs follow. For the next year, management wial use a now materiali, which will reduce direct materials costs to $1.40 per unit and reduce direct labor costs to $1.50 per unit. Sales, total foxed costs, variable overhead costs per unit, and variable selling and administrotive costs per unit will not change. Monagement is aiso considening rasing its selling price to $22.80 per unit, which would decrease unit sales volume to 27,000 units. Problem 18-5A (Algo) Part 2 2. Prepare a contribution margin income statement for next year with two columns showing the expected results of (a) using the new material and (b) using the new matertal and increasing the selling price. 2. Prepare a contribution margin income statement for next year with two columns showing the expected results of (a) using the new material and (b) using the new material and increasing the selling price