Required information The following information we to the questions yed below This year Durchard Company sold 40,000 units of its only product for $1700 per Manufacture and in the product requued $125.000 of fed manufacturing costs and 5185,000 offseting and traveco per Variable costs follow AI ortable that com ) Valle 2. 0.41 Next year the company will use new material which will reduce material costs by 50% and decit labor costs by 50% and will not affect product quality of marty Management is considering an increase in the unt sing price to reduce the number of units sold because the factory's output is nearing annual pit capacity of 45.000 units Tops being considered Under plan the company will the selling price at the curent level and selles volume last you. This plan will increase income because of the reduced costs from ung the new material Underplan 2. the company witncrease the selling price by 20 The plan wil decrease in sales volume by 5 Under both plans and 2 the totified costs and the valabile con perunt for overhead and for voting and administrate come il remain the 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.com buton magn total find costs come before taxesincome as 35 vatel and net income HURCHARD CO Forecaud Cunun Margie teme Number of 40 000 15.60 5.775200 sales Marities 600 000 775.200 BURCHARD CO. Forecasted Contribution Margin Income Statement Plan 1 Plan 2 Number of units: 40,000 38,000 Sales $ 680,000 $ 775,200 680,000 775,200 Variable costs Contribution margin Fixed costs Income before taxes income taxes 680,000 775,200 Net Income (loss) $ 680,000 $ 775.200 Required information The following information we to the questions yed below This year Durchard Company sold 40,000 units of its only product for $1700 per Manufacture and in the product requued $125.000 of fed manufacturing costs and 5185,000 offseting and traveco per Variable costs follow AI ortable that com ) Valle 2. 0.41 Next year the company will use new material which will reduce material costs by 50% and decit labor costs by 50% and will not affect product quality of marty Management is considering an increase in the unt sing price to reduce the number of units sold because the factory's output is nearing annual pit capacity of 45.000 units Tops being considered Under plan the company will the selling price at the curent level and selles volume last you. This plan will increase income because of the reduced costs from ung the new material Underplan 2. the company witncrease the selling price by 20 The plan wil decrease in sales volume by 5 Under both plans and 2 the totified costs and the valabile con perunt for overhead and for voting and administrate come il remain the 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.com buton magn total find costs come before taxesincome as 35 vatel and net income HURCHARD CO Forecaud Cunun Margie teme Number of 40 000 15.60 5.775200 sales Marities 600 000 775.200 BURCHARD CO. Forecasted Contribution Margin Income Statement Plan 1 Plan 2 Number of units: 40,000 38,000 Sales $ 680,000 $ 775,200 680,000 775,200 Variable costs Contribution margin Fixed costs Income before taxes income taxes 680,000 775,200 Net Income (loss) $ 680,000 $ 775.200
