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Required information The following information applies to the questions displayed below This year Burchard Company sold 45,000 units of its only product for $18.00 per

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Required information The following information applies to the questions displayed below This year Burchard Company sold 45,000 units of its only product for $18.00 per unit Manufacturing and seling the product required $130,000 of food manufacturing costs and $190.000 of foed selling and administrative costs. Its per unit variable costs follow Material Direct labor (paid on the basis of completed units) Variable overhead costs Variable selling and administrative costs e.se . Next year the company will use a new material, which will reduce material costs by 70% and direct labor costs by 30% 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 50,000 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 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 30% This plan will decrease unit sales volume by 15%. Under both plans, the total red 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 (a) plan 1 and (biplan 2. Round "per unit answers" and "CM ratio percentage answer to 2 decimal places.) Per unit Sales Variable Costs Material Direct labor Variable overhead Variable S&A costs Total are costs Contribution margin 0.00 000 Contribution Margin Ratio Choose Numerator 1 Choose Denominator Coban Margin Rabo Contribution marginal ) Break Even Point in Dollars Choose Numerator: Choose Denominator Brewerin Dollar Boven pontina Plan 2 Contribution Margin Ratio Contribution margina Break.Even Pointin Dollars

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