7 13. Shaw Electronics, Inc. sells MP3 players for $60 each. Variable costs are S40 per unit, and fixed costs total $120,000. How many MP3 players must Shaw sell to earn net income of $280,000? A) 6,000. B) 5,000 C) 7,000. D) 20,000. 7 16. The contribution margin ratio increases when A) fixed costs increase. B) variable costs as a percentage of sales decrease. C) variable costs as a percentage of sales increase. D) fixed costs decrease