Forrester Company is considering buying new equipment that would increase monthly fixed costs from $379,500 to $507,000 and would decrease the current variable costs of $75 by $10 per unit. The selling price of $130 is not expected to change. Forrester's current break-even sales are $897,000 and current break-even units are 6,900. If Forrester purchases this new equipment, the revised contribution margin ratio would be:

Multiple Choice

65%. 40%. 75%. 50%. 10%.

McCoy Brothers manufactures and sells two products, A and Z in the ratio of 4:2. Product A sells for $89; Z sells for $118. Variable costs for product A are $44; for Z $53. Fixed costs are $523,900. Compute the number of units of Product Z McCoy must sell to break even.

Multiple Choice

3,380.

1,457.

6,760.

10,447.

9,885.