This year Burchard Company sold 27,000 units of its only product for $19.60 per unit. Manufacturing and selling the product required $112,000 of fixed manufacturing costs and $172,000 of fixed selling and administrative costs. Its per unit variable costs follow. 0 Material Direct labor (paid on the basis of completed units) Variable overhead costs Variable selling and administrative costs $3.20 2.20 0.32 0.12 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 32,000 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. yeaffect, nits s er lan incomeb 25% r unit fo uired: mpute the break-even point in dollar sales for both (a) plan 1 and (b) plan 2. (Round "per unit answers" and "CM ratio" entage answer to 2 decimal places) Plan 1 Sales Variable Costs Material Direct labor Variable overhead costs Variable S&A costs Total variable costs Prev1 1 2rENext of Saved Required information i variable Cos15 Material Direct labor Variable overhead costs Variable S&A costs Total variable costs Contribution margin Plan 1 argin ratio Choose Numerator: Choose Denominator: Contribution margin ratio Contribution margin ratio Break-even point in dollars Choose Numerator Choose Denominator: | Break-even point in dollars Break-even point in dollars Plan 2 Contribution margin ratio Break-even point in dollars