1.)The contribution margin ratio increases when Answer A. variable costs as a percentage of sales decrease. B. fixed costs increase. C. variable costs as a percentage of sales increase. D. fixed costs decrease. 2.)A shift from low-margin sales to high-margin sales Answer A. may increase net income, even though there is a decline in total units sold. B. will always decrease net income. C. will always decrease units sold. D. will always increase net income.