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0 Required information [The following information applies to the questions displayed below] Burchard Company sold -'-l-0,000 units of its only product for $1100 per unit this year. Manufacturing and selling the product required $310,000 of 'lixed costs. Its per unit variable costs follow. Direct materials 5 4.58 Direct labor 3.58 Variable overhead costs 0.45 Variable selling and administrative costs 6.25 For the next year, management will use a new material, which will reduce direct materials costs to $2.25 per unit and reduce direct labor costs to $135 per unit. Sales, total fixed costs, variable overhead costs per unit, and variable selling and administrative costs per unit will not change. Management is also considering raising its selling price to $20.40 per unit, which would decrease unit sales volume to 38,000 units. Required: 1. Compute the contribution margin per unit from {a} using the new material and [b] using the new material and increasing the selling price. [Round your answers to 2 decimal places] Sales prioe per unit Variable costs per unit Direct materials Direct labor Uan'able overhead Vanable selling 8. administrative expenses Variable costs per unit Contribution margin per unit Required information In_".I"i'ie following information applies to the questions dispiayeo' below} Burchard Company sold 40,000 units of its only product for $1100 per unit this year. Manufacturing and selling the product required $310,000 of xed costs. Its per unit variable costs follow. Direct materials $ 4.50 Direct labor 3.50 Variable overhead costs 0.45 Variable selling and administrative costs 0.25 For the next year, management will use a new material, which will reduce direct materials costs to $2.25 per unit and reduce direct labor costs to $135 per unit. Sales, total fixed costs, variable overhead costs per unit, and variable selling and administrative costs per unit will not change. Management is also considering raising its selling price to $20.40 per unit, which would decrease unit sales volume to 38,000 units. 2. Prepare a contribution margin income statement for next year with two columns showing the expected results of la] using the new material and {b} using the new material and increasing the selling price. Number ofunits