= = III Normal No Spacing Heading 1 True or false I 5. The trend in most companies is to have more variable costs and fewer fixed costs. 6. The 40% contribution margin ratio means that $.60 of every dollar of sales is available to cover fixed costs and produce profit. 7. A cost-volume-profit graph shows the amount of net income or loss at each level of sales. _8. If the variable costs per unit are 70% of sales, the fixed costs are $ 290,000 and the target net income is $ 70,000, the required sales are $ 1,200,000