1. If variable costs per unit decrease and total fixed costs decrease, which of the following is false?

a Contribution margin ratio will increase. b Contribution margin per unit will increase. c Net operating income will increase. d Net operating income will decrease.

2.

The Blues Brothers Company wants to earn an after-tax profit of $180,000. The company sells each unit for $100 and variable costs represent 60% of sales. If fixed costs total $62,000 and the companys tax rate is 40%, how many units does the company need to sell in order to meet their goal?

a	9,050 units.
b	12,800 units.
c	11,250 units.
d	7,500 units