In 2021, Blossom Company had a break-even point of $331,700 based on a selling price of $5 per unit and fixed costs of $112,778. In 2022, the selling price and the variable cost per unit did not change, but the break-even point increased to $427,400. Calculate the variable cost per unit and the contribution margin ratio for 2021. (Round variable cost per unit to 2 decimal places, e.g. 15.25.) Variable cost Contribution margin ratio eTextbook and Media $ Calculate the increase in fixed costs for 2022. Increase in fixed costs $ per unit %
In 2021, Blossom Company had a break-even point of $331,700 based on a selling price of $5 per unit and fixed costs of $112,778. In 2022, the selling price and the variable cost per unit did not change, but the break-even point increased to $427,400. Calculate the variable cost per unit and the contribution margin ratio for 2021. (Round variable cost per unit to 2 decimal places, e.g. 15.25.) Variable cost Contribution margin ratio eTextbook and Media $ Calculate the increase in fixed costs for 2022. Increase in fixed costs $ per unit %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Focner
Transcribed Image Text:In 2021, Blossom Company had a break-even point of $331,700 based on a selling price of $5 per unit and fixed costs of $112,778. In
2022, the selling price and the variable cost per unit did not change, but the break-even point increased to $427,400.
Calculate the variable cost per unit and the contribution margin ratio for 2021. (Round variable cost per unit to 2 decimal places, e.g.
15.25.)
Variable cost
Contribution margin ratio
eTextbook and Media
Calculate the increase in fixed costs for 2022.
Increase in fixed costs $
per unit
%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education