1)

Sales are $50000 and variable costs are $42500. How much is the contribution margin ratio?

85%.

30%.

15%.

Cannot be determined without more information.

2)

Bramble Inc. produces buckets. The selling price is $20 per unit and the variable costs are $7 per bucket. Fixed costs per month are $4920. If Bramble sells 10 more units beyond break even, how much does profit increase as a result?

$130

$378

$703

$14060