In 2020, Manhoff Company had a break-event point of $350,000 based on a selling price of $5 per unit and fixed costs of $112,000. In 2021, the selling price and the variable costs per unit did not change, but the break-event point increased to $420,000.
Instructions
- Compute the varitable costs per unit and the contribution margin ratio for 2020
- Compute the increase in fixed costs for 2021
Solution
