This year Burchard Company sold 44,000 units of its only product for $17.80 per unit. Manufacturing and selling the product required $129,000 of fixed manufacturing costs and $189,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material $4.90 direct labor $3.90 variable overhead costs $0.49 variable selling and administrative costs $0.29

compute the break even point in dollar sales for both plan 1 and plan 2.

IThe followng wrformation apples to the questions dispayed below! year Company sold 44.000 units of tts only product for $1780 per unit Manufactunng and selling the product required 00 of fixed manufactunng costs and s189.000 orfixed seling and odministratwe costs, per unit vanabie foilow S 490 Direct labor paid on the basis of completed units variable overhead costs 049 vonebie sefing and administra the costs by year the company will use new meieriei, winch wil reduce motenat costs by 60 and atrect abor costs 40 end wu not affect product quetty or marketablity Menagement ts considering an increase in the unt eates pnce to reduce the number of units soid bocause the factorys output neanng its annuat output capacity 49.000 units patys are being consucerea Under pien the comoany will keep the price at the current level and sell the same volume es last year Thts Mttlicreace income because ofthe reduced costs rem upang the new matenal Under pian 2, the ccmoany wil tricrease price by 20% This plan remain the