1. Jackson Corp sells units for $100 each. Variable costs are $80 per unit, and fixed costs are $200,000. If Jackson leases a new machine, fixed costs will increase by $60,000 a year, but production will be more efficient, saving $5 per unit. At what level of production will Jackson be indifferent between leasing and not leasing the new machine?

	a.	5,000
	b.	10,000
	c.	10,400
	d.	12,000

2. Padua Corp has sales of $400,000, a variable cost ration of 60%, and a profit of $40,000. If 10,000 units were sold, what is the contribution margin per unit?

	a.	$40.00
	b.	$24.00
	c.	$16.00
	d.	$12.00