All of the following statements are true except:

		The variable cost per unit is $9 and the selling price per unit is $12, therefore the contribution margin ratio is 75%.
		The impact on net operating income of a given dollar change in sales can be calculated by applying the contribution margin ratio to the dollar change in sales.
		The variable cost per unit is $10 and the selling price per unit is $50, therefore the contribution margin ratio is 80%.
		The larger the contribution margin ratio, the smaller the amount of sales required to cover a given amount of fixed costs.