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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 %

FINANCIAL ACCOUNTING
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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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 %
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 %
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