Week 2 Homework Fliponomics-Google Drive Required information The following information applies to the questions displayed below 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. Material Direet labor (paid on the basis of completed units) Variable selling and administrative costs $3.20 2.20 0.32 0.12 company will use new material, which will reduce material costs by 60% and direct labor costs by 40% and unit selling price to reduce of 32,000 units. Two plans are will not affect product quality or marketability. Management is considering an increase in the the number of units sold because the factory's output is nearing its annual output capacity being considered. Under plan 1, the company will keep the selling price at the ast year. This plan will increase income because of the reduced costs from using t current level and sell the same volume as 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 , 2, the total fixed costs and the variable costs per unit for overhead and for selling and 2. Prepare a forecasted contribution margin income statement with two columns showing the expected results of plan 1 and plan 2 statements should report sales, total variable costs, contribution margin, total fixed costs, income before taxes, come taxes (40% rate), and net income. CHARD CO. MacBook Air 3 4 ework Saved ll 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 the number of units sold because the factory's output is nearing its annual output capacity of 32,000 units. Two plans are in the unit selling price to reduce ng considered. Under plan 1, the company will keep the selling price at the current level and sell the same volume as 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 2, the total fixed costs same volume by 10%. Under both plans 1 and and the variable costs per unit for overhead and for selling and administrative costs will remain the 2. Prepare a forecasted contribution margin income statement with two columns s The statements should report sales, totalvariable costs, contribution margin, total fixed costs, income before taxes, income taxes (40% rate), and net income. howing the expected results of plan 1 and plan 2 BURCHARD CO Forecasted Contribution Margin Income Statement Plan 1Plan 2 Number of units: 27,000 24,300 K Prev 2 of 5 Next >