Required information The following information applies to the questions displayed below) This year Burchard Company sold 41000 units of its only product for $17.20 per unit Manufacturing and selling the product required $126,000 of fixed manufacturing costs and $186,000 of fixed selling and administrative costs. Its per unit variable costs follow Haters Direct labor paid on the hot completed Variable uverhoud Costa Variable selling strative conta 34.60 3.60 6.16 0.26 Next year the company will use new material which will reduce material costs by 60% and direct labor costs by 40% and will not affect product quality of marketability Management is considering an increase in the unit selling price to reduce the number of units sold because the factory's output is neading its annual output capacity of 46.000 units. Two plans are being considered. Under plant the company will keep the selling price at the current level and sell the same volume as last yeat 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 25% This plan will decrease unit sales volume by 10%. Under both plans 1 and 2, the total fixed costs and the variable costs per unit for overhead and for selling and administrative costs will remain the Same Required: 1. Compute the break-even point in dollar sales for both taj plan 1 and (b) plan 2. (Round Torunit answers" and "CM ratio percentage answer to 2 decimal places) Per Sales Variable costs Material Director Varoved costs Variable costs Total articoste Corona 0.48 226 0.72 0.00 Centre Ghhai. Bit gi v Choose a Color Comunale Brekvencinin Chaces et Choose Denon point in Brendan Corte Breakpoint Brak even point in ons 0 Required information The following information applies to the questions displayed below.) This year Burchard Company sold 41000 units of its only product for $17.20 per unit Manufacturing and selling the product required $126,000 of fixed manufacturing costs and $186,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material Direct Labor (paid on the basis of completed units Variable overhead coats Variable selling and administrative coats $4.60 3.60 0.26 Next year the company will use new material, which will reduce material costs by 60% and direct labor costs by 40% 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 46.000 units. Two plans are being considered. Under plan 1, 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 25%. This plan will decrease unit sales volume by 10%. Under both plans and 2, the total fixed costs and the variable costs per unit for overhead and for selling and administrative costs will remain the some 2. Prepare a forecasted contribution margin income statement with two columns showing the expected results of plant and plan 2. The statements should report sales, total variable costs, contribution margin, total fixed costs, income before taxes, Income taxes (40% rate), and net income. BURCHARD CO Forecasted Contribution Margin income Statement Plant Plan 2 Number of units: 41,000 36.900 0 0 Required information The following information applies to the questions displayed below) This year Burchard Company sold 41,000 units of its only product for $17.20 per unit. Manufacturing and selling the product required $126,000 of fixed manufacturing costs and 5186,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material Direct labor paid on the basis of completed units Variable overhead costa variable selling and administrative coats $4.60 3.60 0.46 0.26 Next year the company will use new material, which will reduce material costs by 60% and direct labor costs by 40% 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 46,000 units. Two plans are being considered. Under plan 1. 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 25% This plan will decrease unit sales volume by 10%. Under both plans 1 and 2 the total fixed costs and the variable costs per unit for overhead and for selling and administrative costs will remain the Same 1. Compute the break-even point in dollar sales for both (a) plan 1 and (b) plan 2. (Round "per unit answers and TCM ratio percentage answer to 2 decimal places.) Per unit Plant Plan 2 Sales 12:20 Variable Costs Materi Direct labor Vanable overhead costs Variable S&A costs Total variable costs Contribution margin 0.46 0.26 0.72 0.00 Plan 1 Contribution margin ratio Choose Numerator: Choose Denominator Contribution margin ratio Contribution margin ratio 0 Broak even point in dollar Choose Numerator Choose Denominaton Break-even point in dollars Break-even point in dollars 0 Plan 2 Contribution marginato Contribution margin Patio 0 Break von point in dollars Break-even point in dolans 0 2. Prepare a forecasted contribution margin income statement with two columns showing the expected results of plan 1 and plan 2. The statements should report sales, total variable costs, contribution margin, total fixed costs, income before taxes, income taxes (40% rate), and net income BURCHARD CO Forecasted Contribution Margie Income Statement Plan Plan 2 Number of units 41.000 36.900 0 0 0 $