Question

In 2016, Manhoff Company had a break-even point of $350,000 based on a selling price of $5 per unit and fixed costs of $112,000. In 2017, the selling price and the variable costs per unit did not change, but the break-even point increased to $420,000.

Instructions
(a) Compute the variable costs per unit and the contribution margin ratio for 2016.
(b) Compute the increase in fixed costs for 2017.



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  • CreatedMarch 02, 2015
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