1. Noel & Vang Company sells only one product at a regular price of $9.00 per unit. Variable expenses are 55% of sales, and fixed expenses are $40,000. Management has decided to decrease the selling price to $8.00 in the hope of increasing its volume of sales. What is the contribution margin ratio when the selling price is reduced to $8.00 per unit? (Note: Round answer to two decimal places.) a. 40.50% b. 38.13% c. 75.46% d. 60.50% 2. During 2019. Arledge Albums sold 8,000 photo albums. The company's contribution margin was calculated as follows: Sales Variable Costs CM Per Unit $200 S60 $140 Percent of Sales 100% 3.024 70% Fixed expenses for 2019 totaled $700,000. For 2020, Arledge is considering decreasing the sales price of their albums by S4 and using paper that costs $3 less than the paper they currently use. They believe that these changes and an increase in advertising of $30,000 will increase demand by 10%. What effect would these changes have on net operating income? a. $58,400 b. $96,100 c. $85,900 d. $73,200 J. Which of the following should happen if a company wants to increase its margin of safety? a. It should decrease the contribution margin. b. It should attempt to raise the break-even point. c. The selling price should be decreased d. The sales volume should be increased