Forrester Company is considering buying new equipment that would increase monthly fixed costs from $160,000 to $190,000 and would decrease the current variable costs of $80 by $10 per unit. The selling price of $140 is not expected to change. Forrester's current break-even sales are $440,000 and current break-even units are 10,200. If Forrester purchases this new equipment, the revised contribution margin ratio would be:

Multiple Choice

40%.

70%.

50%.

10%.

80%.