In 2024, Sandhill Company had a break-even point of $332,000 based on a unit selling price of $5.00 and fixed costs of $99,600. In 2025, the unit selling price and the unit variable costs did not change, but the break-even point increased to $428,000. (2)
In 2024, Sandhill Company had a break-even point of $332,000 based on a unit selling price of $5.00 and fixed costs of $99,600. In 2025, the unit selling price and the unit variable costs did not change, but the break-even point increased to $428,000. (2)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:In 2024, Sandhill Company had a break-even point of $332,000 based on a unit selling price of $5.00 and fixed costs of $99,600. In
2025, the unit selling price and the unit variable costs did not change, but the break-even point increased to $428,000.
(a)
Your answer is correct.
Compute the unit variable costs and the contribution margin ratio for 2024. (Round unit variable cost to 2 decimal places, e.g. 2.25
and contribution margin ratio to 0 decimal places, e.g. 20%.)
Unit variable cost
Contribution margin ratio
e Textbook and Modia
3.5
30
%

Transcribed Image Text:(b)
Your answer is incorrect.
Compute the increase in fixed costs for 2025.
Increase in fixed cost $
eTextbook and Media
T
Attemptr: 2.0f Zucod
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