A company manufactures a single product and reports the information below for this year. Sales price...

 

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A company manufactures a single product and reports the information below for this year. Sales price per unit Variable cost per unit Total fixed costs Sales Income $ 140 $116 $ 82,000 5,900 units $ 31,600 For next year, the company expects to sell 5,900 units at $140 per unit. The company is considering two alternative changes to its cost structure for next year. Alternative 1: Replace machines with direct labor. This will increase variable costs per unit to $120 and reduce fixed costs to $62,000. Alternative 2: Replace direct labor with machines. This will decrease variable costs per unit to $114 and increase fixed costs to $105,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution margin income statement for Alternative 1. Contribution Margin Income Statement For Next Year - Alternative 1 Contribution margin A company manufactures a single product and reports the information below for this year. Sales price per unit Variable cost per unit Total fixed costs Sales Income $ 140 $116 $ 82,000 5,900 units $ 31,600 For next year, the company expects to sell 5,900 units at $140 per unit. The company is considering two alternative changes to its cost structure for next year. Alternative 1: Replace machines with direct labor. This will increase variable costs per unit to $120 and reduce fixed costs to $62,000. Alternative 2: Replace direct labor with machines. This will decrease variable costs per unit to $114 and increase fixed costs to $105,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution margin income statement for Alternative 1. Contribution Margin Income Statement For Next Year - Alternative 1 Contribution margin