In 2019, Demuth Company had a break-even point of $304,100 based on a selling price...
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Accounting
In 2019, Demuth Company had a break-even point of $304,100 based on a selling price of $7 per unit and fixed costs of $112,517. In 2020, the selling price and the variable cost per unit did not change, but the break-even point increased to $421,300.
Calculate the variable cost per unit and the contribution margin ratio for 2019. (Round variable cost per unit to 2 decimal places, e.g. 15.25.)
Variable cost | $ | per unit | |
Contribution margin ratio | % |
Calculate the increase in fixed costs for 2020.
Increase in fixed costs | $ |
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