In 2016, Monty Company had a break-even point of $580,000 based on a selling price of $10 per unit and fixed costs of $191,400. In 2017, the selling price and the variable costs per unit did not change, but the break-even point increased to $725,000.

(a)

Compute the variable costs per unit and the contribution margin ratio for 2016. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to 0 decimal places, e.g. 20.)

Variable costs per unit		$
Contribution margin ratio			%

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