E17.6 Calculate variable cost per unit, contribution margin ratio, and increase in fixed costs. LO4 In 2019, 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 2020, the selling price and the variable cost per unit did not change, but the break-even point increased to $455 000.

Required

(a) Calculate the variable cost per unit and the contribution margin ratio for 2019.

(b) Calculate the increase in fixed costs for 2020.