This year Burchard Company sold 40,000 units of its only product for $17,000 per unit.

Required information The following information applies to the questions displayed below Part 1 of 2 This year Burchard Company sold 40,000 units of its only product for $17.00 per unit. Manufacturing and selling the product required $125,000 of fixed manufacturing costs and $185,000 of fixed selling and administrative costs. Its per unit variable costs follow 00:07:43 Material Direct labor (paid on the basis of completed units) Variable overhead costs Variable selling and administrative costs $ 4.50 3.50 8.45 0.25 Next year the company will use new material, which will reduce material costs by 50% and direct labor costs by 50% 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 45,000 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 5%. 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. Required: 1. Compute the break-even point in dollar sales for both (a) plan 1 and (b) plan 2. (Round "per unit answers" and "CM ratio" percentage answer to 2 decimal places.) Mc Graw Pre 2627 of 29 Next > Sales Variable Costs: Material Direct labor Variable overhead costs Variable S&A costs Total variable costs Contribution margin Choose Numerator ratio margin ratio Choose Numerator: Break even n dollars Break-even point in dollars Plan 2 margin rato Break-even point in dollars