Burchard Company sold 32,000 units of its only product for $18.60 per unit this year....
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Accounting
Burchard Company sold units of its only product for $ per unit this year. Manufacturing and selling the product required $ of fixed costs. Its per unit variable costs follow.
Direct materials $
Direct labor
Variable overhead costs
Variable selling and administrative costs
For the next year, management will use a new material, which will reduce direct materials costs to $ per unit and reduce direct labor costs to $ 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 $ per unit, which would decrease unit sales volume to units.
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