In 2021, Sunland Company had a break-even point of $372,000 based on a unit selling price...

Transcribed Image Text:

In 2021, Sunland Company had a break-even point of $372,000 based on a unit selling price of $6.00 and fixed costs of $111,600. In 2022, the unit selling price and the unit variable costs did not change, but the break-even point increased to $495,000. (a) Your answer is incorrect. Compute the unit variable costs and the contribution margin ratio for 2021. (Round unit variable cost to 2 decimal places, eg. 2.25 and contribution margin ratio to O decimal places, e.g. 20%) Unit variable cost Contribution margin ratio $ I % In 2021, Sunland Company had a break-even point of $372,000 based on a unit selling price of $6.00 and fixed costs of $111,600. In 2022, the unit selling price and the unit variable costs did not change, but the break-even point increased to $495,000. (a) Your answer is incorrect. Compute the unit variable costs and the contribution margin ratio for 2021. (Round unit variable cost to 2 decimal places, eg. 2.25 and contribution margin ratio to O decimal places, e.g. 20%) Unit variable cost Contribution margin ratio $ I %

Answer rating: 100% (QA)

To calculate the unit variable cost and contribution margin ratio for 2021 we can us... View the full answer