In 2019, Randy Co. had a break-even point of $1,000,000 based on a selling price of $100 per unit and fixed costs of $500,000. In 2020, the selling price and variable costs per unit did not change, but the break-even point increased to $1,500,000. Using the contribution margin ratio, compute the increase in fixed costs for 2020. O O O O Formulas 1. Cost per equivalent unit = Costs for the Period / Equivalent Units of Production for the period 2. Conversion costs = Direct Labor + Manufacturing Overhead 3. Units completed/transferred out + Equivalent units of ending work in process = Equivalent units of production 4. Predetermined Overhead rate = Estimated Overheads / Estimated Allocation Base (Activity Level) 5. Applied Overhead = Predetermined Overhead Rate x Actual Allocation Base (Activity level) 6. Profit = (Price x Quantity) - (Variable Costs + Fixed Costs) 7. Unit contribution margin = Unit Selling Price - Unit Variable Cost 8. Contribution Margin Ratio = Unit Contribution Margin / Unit Selling Price 9. Break-even point (units) = Fixed Costs / Unit Contribution Margin 10. Break-even point (dollars) = Fixed Costs/CM Ratio 11. Margin of safety Total sales - Break-even sales 250,000 150,000 750,000 200,000