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Question - Last year, the Haley Company had a breakeven point of $600,000 based on a selling price of $15 per unit and fixed costs of $240,000. This year, the selling price and variable costs are not expected to change, but the breakeven point is projected to increase to $900,000.
a. What is the contribution margin ratio for last year and this year?
b. What are the total projected fixed costs for this year?
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