Reference no: EM13601127

In 2011, Hoffmann 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 2012, the selling price and the variable cost per unit did not change, but the break-even point increased to $420,000.

Compute the variable cost per unit and the contribution margin ratio for 2011. (Round variable cost to 2 decimal places, e.g. 2.25, and the other answer to 0 decimal places, e.g. 125.)

• Variable cost per unit $:
• Contribution margin ratio % :
• Compute the increase in fixed costs for 2012.$: