In 2008, Hadicke Company had a break-even point of \(\$ 350,000\) based on a selling price of \(\$ 7\) per unit and fixed costs of \(\$ 105,000\). In 2009 , the selling price and the variable cost per unit did not change, but the break-even point increased to \(\$ 420,000\).

Instructions:

(a) Compute the variable cost per unit and the contribution margin ratio for 2010.

(b) Compute the increase in fixed costs for 2011.