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 $19.00 per unit this year. Manufacturing and seiling the product required $290,000 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 $1,40 per unit and reduce direct labor costs to $1.50 per unit. Sales, total fixed costs, variable overhead costs per unit, and variable selling and administrotive costs per unit wili not change. Management is also considering raising its selling price to $22.80 per unit, which would decrease unit sales volume to 27,000 units. Problem 18-5A (Algo) Part 1 Required: 1. Compute the contribution margin per unit from (a) using the new matetial and (b) using the now material and increasing the selfing price (Round your answers to 2 decimal places.) Required: 1. Compute the contribution margin per unit from (a) using the new material and (b) using the new material and increasing the selling price. (Round your answers to 2 decimal places.)