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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)

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 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: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 %
(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
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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