In 2020 Donald Company had a break-even point of $900,000 based on a selling price of $10 per unit and fixed costs of $360,000. In 2021 the selling price and variable costs per unit did not change, but the break-even point increased to $920,000.

Instructions

a. Calculate the variable cost per unit for 2020.

b. Calculate the contribution margin ratio for 2020.

c. Calculate the amount of total fixed costs for 2021