Required Information The following information applies to the questions displayed below) This year Burchard Company sold 40,000 units of its only product for $25 per unit Manufacturing and selling the product required $200,000 of fixed manufacturing costs and $325,000 of foed selling and administrative costs. Its per unit variable costs follow Material Direct labor paid on the basis of completed wita Variable overhead coats Variable selling and administrative conte $8.00 5.00 1.00 0.50 Next year the company will use a new material, which will reduce material costs by 50% and direct labor costs by 60% 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 45,000 units. Two plans are being dered. Under plant 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 20%. This plan will decrease unit sales volume by 10%. Under both plans, the total fixed costs and the variable costs per unit for overhead and for seling and administrative costs will remain the same. Required: 1. Compute the break even point in dollar sales for plan 1 and plan 2. Round "per unit answers to 2 decimal places) Plan Sales Va Costa Malarial Director MacBook Air 80 888 IL 7 # - $ 4 A 3 % 5 # 6 & 7 8 9 . N E R T T Y Y U O D F G H J Plan 1 Pan 2 Sales Variable Costs: Material Direct labor Variable overhead costs Variable S&A costs Total variable costs 0.00 0.00 Contribution margin Plan 1 Contribution Marginata Choose Numerator Choose Denominator Contribution Margin Ratio Contribution margin ratio Brake Paintin Dollars Choose Numerator Choose Denominator: Breakeven Point in Dollars Break-even point in dotars 2 Contribution margin to Breakpointin dollar MacBook Air so 988 F F5 11 FYA # 3 $ 4 A % 5 6 & 7 * 00 9 0 W E 70 T T Y U O D F G H