Required information Problem 21-5A (Static) Contribution margin; income effects of alternative strategies LO C2, A1, P2 Skip to question [The following information applies to the questions displayed below.] Burchard Company sold 40,000 units of its only product for $25 per unit this year. Manufacturing and selling the product required $525,000 of fixed costs. Its per unit variable costs follow. Direct materials $ 8.00 Direct labor 5.00 Variable overhead costs 1.00 Variable selling and administrative costs 0.50 For the next year, management will use a new material, which will reduce direct materials costs to $4.50 per unit and reduce direct labor costs to $2 per unit. Sales, total fixed costs, variable overhead costs per unit, and variable selling and admin