27. Company B has a contribution margin ratio of 30% and fixed costs of $15,000. If the company wants to achieve a target profit of $12,000, what is the required level of sales revenue? a. $90,000 b. $40,000 c. $60,000 d. $30,000 28. Company C has fixed costs of $30,000, a selling price of $50 per unit, and a variable cost of $20 per unit. If the company wants to earn a profit of $60,000, how many units must it sell? a. 2,000 units b. 3,000 units c. 4,000 units d. 5,000 units 29. What is the key difference between fixed and variable costs in business? a. Total fixed costs remain constant per unit of production, while total variable costs change. b. Fixed costs are directly tied to sales volume, while variable costs are not. c. Fixed costs are incurred in the short term, while variable costs occur in the long term. d. Fixed costs are easy to control, while variable costs are more challenging to manage. 30. If a business experiences an increase in production and, as a result, its total costs remain unchanged, what type of cost is likely to be fixed? a. Direct labor costs b. Raw material costs c. Rent on factory space d. Commission paid to salespeople