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In 2015, Stallman Co. had a break-even point of $800,000 based on a selling price of $10 per unit and fixed costs of $200,000. In 2016, the selling price and variable costs per unit did not change, but the break-even point increased to $840,000.
(a) Compute the variable cost per unit and the contribution margin ratio for 2015. (Round variable cost to 2 decimal places, e.g. 52.75.)
Variable cost $ per unitContribution margin ratio %b). Using the Contribution Margin Ratio, compute the increase in fixed costs for 2016
T. J. Carlin has the following transactions during August of the current year. Indicate(a) The effect on the accounting equation and (b) The debit-credit analysis illustrated on pages 61–66 of the text.
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