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Calculate the variable cost per unit and contribution margin

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Question

In 2016, Wiggins Ltd had a break-even point of $350 000 based on a selling price of $7 per unit and fixed costs of $105 000. In 2017, the selling price and the variable cost per unit did not change, but the break-even point increased to $455 000.

Calculate the variable cost per unit and the contribution margin ratio for 2016.

Reference no: EM132323929

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