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Compute the increase in fixed costs for 2011

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In 2010, Hadicke Company had a break-even point of $350,000 based on a selling price of $7 per unit and fixed costs of $105,000. In 2011, the selling price and the variable cost per unit did not change, but the break-even point increased to $420,000.

Instructions

(a) Compute the variable cost per unit and the contribution margin ratio for 2010.

(b) Compute the increase in fixed costs for 2011.

Reference no: EM13522294

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