1. If sales are $829,000, variable costs are 76% of sales, and operating income is $237,000, what is the contribution margin ratio?

   a.28%

   b.24%

   c.76%

   d.72%

2. Variable costs as a percentage of sales for Lemon Inc. are 68%, current sales are $600,000. and fixed costs are $210,000. How much will operating income change if sales increase by $46,200?

   a.$14,784 decrease

   b.$31,416 increase

   c.$31,416 decrease

   d.$14,784 increase