1. At the high level of activity in November, 8000 machine hours were run and power costs were $16000. In April, a month of low activity, 3000 machine hours were run and power costs amounted to $7000. Using the high-low method, the estimated fixed cost element of power costs is

A. $1600.

B. $16000.

C. $14400.

D. $7000.

2. A company has a unit contribution margin of $200 and a contribution margin ratio of 50%. What is the unit selling price?

A. $100.

B. Cannot be determined.

C. $400.

D. $267.