4. In applying the high-low method, what is the unit variable cost? a. $2.16 b. $1.88 c. $2.40 d. Cannot be determined from the information given. 5. If a company had a contribution margin of $750,000 and a contribution margin ratio of 40%, total variable costs must have been a. $1,125,000. b. $450,000. c. $1,875,000. d. $300,000. 6. Sales are $500,000 and variable costs are $300,000. What is the contribution margin ratio? a. 67% b. 40% c. 60% d. Cannot be determined