thx 8

Required information [The following information appilies to the questions displayed below] Burchard Company soid 36,000 units of its only product for $1620 per unit this year, Manufacturing and seling the product required $302,000 of fixed costs. Its per unit variable costs follow. For the next year, management will use a new material, which will recuce direct materials costs to $1.23 per unit and reduce direct labor costs to $2.17 per unit. Sales, total fixed costs, varlable overhend costs per unit, and variable selling and administrative costs per unit will not change. Manngement is o so considering raising its selling price to $21.06 pet unit, which would decrease unit sales volume to 30,500 units. material and (b) using the new material and increasing the seling price: For the next year, management will use a new material, which will reduce direct materials costs to $1,23 per unit and reduce direct labor costs to $2.17 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 $21.06 per unit, which would decrease unit sales volume to 30,600 units. 2. Prepare a contribution margin income statement for next year with two columns showing the expected rosults of (a) ising the new material and (b) using the new meterial and increasing the selling price