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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Question
Hw.54.
![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
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9f13de0d-8ee2-4557-ab0a-aa1afa2929f4%2Fee051ec0-2e01-4fb5-81e3-151b622a7f1b%2Fhblhl56w_processed.jpeg&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9f13de0d-8ee2-4557-ab0a-aa1afa2929f4%2Fee051ec0-2e01-4fb5-81e3-151b622a7f1b%2F6mq73i_processed.jpeg&w=3840&q=75)
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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