Exercise 11-12 In 2016, Bridgeport Company had a break-even point of $530,000 based on a selling price of $10 per unit and fixed costs of $185,500. In 2017, the selling price and the variable costs per unit did not change, but the break-even point increased to $590,000. Compute the variable costs per unit and the contribution margin ratio for 2016. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to 0 decimal places, e.g. 20.) Variable costs per unit $ Contribution margin ratio % Compute the increase in fixed costs for 2017. Increase in fixed cost

Exercise 11-12 In 2016, Bridgeport Company had a break-even point of $530,000 based on a selling price of $10 per unit and fixed costs of $185,500. In 2017, the selling price and the variable costs per unit did not change, but the break-even point increased to $590,000. Compute the variable costs per unit and the contribution margin ratio for 2016. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to 0 decimal places, e.g. 20.) Variable costs per unit $ Contribution margin ratio % Compute the increase in fixed costs for 2017. Increase in fixed cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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