Forrester Company is considering buying new equipment that would increase monthly fixed costs from $240,000 to $270,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $120 is not expected to change. Forrester's current break-even sales are $520,000 and current break-even units are 9,000 . If Forrester purchases this new equipment, the revised contribution margin ratio would be: Multiple Choice 40%. 60%. 50%. 10%. 70%. Flagstaff Company has budgeted production units of 8,900 for July and 9,100 for August. The direct materials requirement per unit is 2 ounces (oz.). The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 20% of the units of budgeted production in the following month. There was 3,560 ounces of direct material in inventory at the start of July. The total cost of direct materials purchases for the July direct materials budget, assuming the materials cost $1.25 per ounce, is: Multiple Choice $22,350. $26,800. $17,800. $22,150. $22,250. Chocolate Company reports the following information from its sales budget: Expected sales: Multiple Cholce $190,000. $80,000. $102,000. $110,000. $22,000