This year Burchard Company sold 32,000 units of its only product for $18.60 per unit Manufacturing and seling th product required $117.000 of fixed manufacturing costs and $177000 of fixed selling and administrative costs its per unit variable costs follow. Material Direct labor (paid on the basis of completed units) $ 3.78 2.78 8.37 0.17 Variable overhead costs Variable selling and administrative costs Next year the company will use new material, which will reduce material costs by 70% and direct labor costs by 30s 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 37000 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 materiat Under plan 2, the company will increase the seling price by 30%. This plan will decrease unit sales volume by 15% Under both plans t end 2 the total fixed costs and the variabie costs per unit for overnead and for seltling and administrative costs will remain the same 2 Prepare a forecasted contribution margin income statement with two columns showing the expected resuts of pian land plan 2 The statements shouid report saies. tota: variable costs, contribution margin, totali fxed costs, income ratel, and net income before taxes, income taxes p5% Statement Pans Plan 2 27200 Number of units