WileyPLUS M Carla Vista Co. has these Sharmzoy C Secure | https://edugen.wileypl

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WileyPLUS M Carla Vista Co. has these Sharmzoy C Secure | https://edugen.wileyplus.com/edugen/student/mainfr.uni : Apps G Google Yaho NVAS Spartan Apps Portal Other bookmark WileyPLUS Kimmel, Accounting, Ge ACCOUNTING-Financial &Managerial; (BUS 186BUS 187) Home Read, Study & Practice Gradebook ORION Downloadable Textbook Azzignment>Open Assignment 1n 2016, Manhoff Company had a breakeven point of $372 000 based on a selling price of $6 per un tand fixed costs of s159,000. In 2017, the selling price and the variable cost: per unit did not change, but the break-even point increased to $495,000 Mungle Choice Your arewer is correct. 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. 25.) va able costs per un Multple Chaice Click if you would like to Show Work for this question: Open Show Work Attempts: 4 of 5 used (b) Compute the incresse in fixed costs for 2017. (Round ansiwer to 0 decimal places, eg. 1,225.) Increase in fixed cost ve Submission Version 4.24.2.4 10:41 AM Type here to search ^-Qs 11/13/2017

Explanation / Answer

Break Ecen Sales = Fixed Cost / Contribution Margin Ratio

372000 = 159000 / Contribution Margin Ratio

Contribution Margin Ratio = 159000 / 372000

= 42.74%

Variable Cost Ratio = 100 - Contribution Margin Ratio

= 100 - 42.74

= 57.26%

Variable Cost = 6 x 57.26%

= $3.44

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