Forrester Company is considering buying new equipment that would increase monthly fixed costs from $130,000 to $160,000 and would decrease the current variable costs of $90 by $30 per unit. The selling price of $120 is not expected to change. Forrester's current break-even sales are $410,000 and current break- even units are 6,000. If Forrester purchases this new equipment, the revised contribution margin ratio would be: Multiple Choice 20%. C 60%. O O a O 50%. o O 30%. O A manufacturer reports the following costs to produce 22,000 units in its first year of operations: direct materials, $22 per unit, direct labor, $18 per unit, variable overhead, $110,000, and fixed overhead, $220,000. Of the 22,000 units produced, 21,200 were sold, and 800 remain in inventory at year-end. Under variable costing, the value of the inventory is: Multiple Choice $32,000. $36,000. $44,000. $40,000