QUESTION 4 Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,000, what dollar amount of sales must be made to produce the target income? A. $207,500 B. $245,000 C. $37,300 D. $170,000 QUESTION 5 A product sells for $30 per unit and has variable costs of $18 per unit. The fixed costs are $720,000. If the variable costs per unit were to decrease to $15 per unit, fixed costs increase to $900,000, and the selling price does not change, break-even point in units would: A. Increase by 6,000. B. Not change C.Equal 6,000 D. Decrease by 20,000 QUESTION 6 Alvarez Company's break-even point in units is 1,000. The sales price per unit is $10 and variable cost per unit is $7. If the company sells 2,500 units, what will net income be? A $3.000 B. $4,500 $35,000 D. $7,500