Required information [The following information applies to the questions displayed below.) This year Burchard Company sold 30,000 units of its only product for $19.00 per unit Manufacturing and selling the product required $115,000 of fixed manufacturing costs and $175,000 of fixed selling and administrative costs. Its per unit variable costs follow Material Direct labor (paid on the basis of completed units) Variable overhead costs Variable selling and administrative costs $ 3.50 2.50 8.35 0.15 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 35,000 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 20%. 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 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 (32% rate), and net income BURCHARD CO. Forecasted Contribution Margin Income Statement Plan 1 Plan 2 Number of units: 30,000 27 000 Required information [The following information applies to the questions displayed below) Henna Co produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 54,000 units of each product. Sales and costs for each product follow, Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes x rate) Net income Product 1 $ 885,600 531,360 354,240 210, 240 144,000 46,080 $97.920 Producto 5885,600 127, 120 788,480 564, 480 144,000 46,080 $ 97,920 Required: 1. Compute the break even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) ProductT Contribution Margin Ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio 0 Break-even point in dollars Choose Numerator: Choose Denominator: Break-Even Point in Dollars Break-even point in dollars 0 Producto Contribution Margin Ratio 11 Contribution margin ratio 0 Break-Even Point in Dollars = Break-even point in dollars 0