1-The Martin Company's variable costs are 35% of sales. Martin is contemplating an advertising campaign that will cost $25,000. If sales are expected to increase $75,000, the company's net income will increase by: a. $26,250 b. $23,750 c. $1,250 d. $65,000 Use the following to answer the next three questions: Gossen Company sells 250,000 pliers for $4.00 per unit. The contribution margin ratio is 25%. Fixed costs $200,000. 2. What is Gossen's contribution margin per unit? a) $1.00 b) $1.50 c) $2.00 d) $2.50 3. What is Gossen's break-even in units? a) 100,000 units b) 160,000 units c) 200,000 units d) 300,000 units How much must Gossen's ales be if it wants to earn $150,000 in profit? a) $1,900,000 b) $1,400,000 c) $1,200,000 d) $ 960,000 4. 5. If Gossen raises it selling price by 10% and lowers it variable costs by 10%, then its contribution margin per unit a) remains the same. b) increases to $3.90 c) decreases to $1.00 d) increases to $1.70