1. Our company sells a product for $150 per unit. Variable costs are $90 per unit and fixed costs are $18,000. The company expects to sell 800 units this year. What is the contribution margin per unit?

$40

$60

$90

$240

2. Which of the following is true?

An increase in sales price per unit decreases the contribution margin per unit.

An increase in sales price per unit increases the number of units required to break even.

When the sales price per unit decreases, the breakeven point increases.

When the sales price per unit increases, the contribution margin per unit remains the same.