14/ est VAINED 173 WD IN 20. Assume the following: Sales $800,000 Variable costs (300,000) Contribution margin $500,000 Fixed costs (375,000) Net income $125.000 If sales increase by 20% and the output is still within the relevant range of production, the revised net income would be a total of: A. $180,000 B. $175,000 C. $150,000 D. $225,000 21. In the regression method of separating mixed costs, the letter b in the formula represents: A. total costs B. total mixed costs C. variable costs per unit of x D. total fixed costs 22. The following items appear for Rory Company: Variable cost of goods sold $ 300,000 Fixed cost of goods sold $ 500,000 Sales $2,000,000 Variable selling, general and administrative expenses $200,000 Fixed selling, general and administrative expenses $400,000 What is the contribution margin? A. $1,000,000 B. $1,500,000 C. $600,000 D. $1,100,000 23. The contribution margin rati computed by dividing: A. contribution margin by the selling price B. selling price by the gross profit C. net income by the selling price D. net income by the cost of goods manufactured 6