If a company increases total fixed costs and decreases the variable cost per unit, the total cost line relative to its previous position on a cost$-$volume$-$profit graph will:

a$.$ shift downward and have a steeper slope.

b$.$ shift downward and have a flatter slope.

c$.$ shift upward and have a flatter slope.

d$.$ shift upward and have a steeper slope.

Pool Company's variable costs are $35\%$ of sales. Pool is contemplating an advertising campaign that will cost $$70,000.$ If sales are expected to increase $$150,000,$ the company's net income will increase by:

a$.$ $$25,000.$

b$.$ $$22,500.$

c$.$ $$15,000.$

d$.$ $$27,500.$

The following information Pertains to Sisk Co$.$:

Sales $(8,000$ units$)$ $$240,000$

Direct materials and Direct labor $($both are variable$)140,000$

Other Variable Costs $20,000$

Fixed Costs $45,000$

Sisk's break$-$even point in number of units is:

a$.4,300.$

b$.3,400.$

c$.3,500.$

d$.4,500.$

Jack Co$.$ can increase sales by $72\%$ by spending $$55,000$ on advertising. If the contribution margin for Jack Co$.$ is currently $$110,000,$ the impact of this decision on net income would be:

a$.$ an increase of $$24,200.$

b$.$ an increase of $$34,500.$

c$.$ a decrease of $$26,700.$

d$.$ net income would not change.

Question $5$ refers to the following:

$\backslash$table$[[$Sales$,2,500$ units$],[$Sales price,$$95$ per unit$],[$Variable costs,$$35$ per unit$],[$Fixed costs,$$78,000$