XYZ Company had been operating for many years within the relevant range. Its fixed costs total $1,200,000. It has variable costs of $120 per unit and a market price of $360 per unit. Required: What is the Company's Contribution Margin? Show computation. a.

2. XYZ Company had been operating for many years within the relevant range. Its fixed costs total $1,200,000. It has variable costs of $120 per unit and a market price of $360 per unit. Required: a. What is the Company's Contribution Margin? Show computation. b. What is the Company's break-even point in dollars? Show computation. c. If the company's variable cost is increased by 25%, keeping other variables constant, what will be the company's new break-even point? Briefly explain the reason for the change from original break-even point to the new. 2. XYZ Company had been operating for many years within the relevant range. Its fixed costs total $1,200,000. It has variable costs of $120 per unit and a market price of $360 per unit. Required: a. What is the Company's Contribution Margin? Show computation. b. What is the Company's break-even point in dollars? Show computation. c. If the company's variable cost is increased by 25%, keeping other variables constant, what will be the company's new break-even point? Briefly explain the reason for the change from original break-even point to the new