The Minccino Companys most recent contribution format income statements show sales volume of 50,000 units, total sales of 550,000; variable expenses of 275,000; and fixed expenses of 50,000.

The firm pursued a strategy that reduced the unit selling price by 1.50 resulting in an increased number of units sold by 25%.

The VARIABLE COST RATIO would (increase/decrease) to ___________%.

Use 2 decimal places; indicate in your solution sheet if the ratio would INCREASE or DECREASE.

The CONTRIBUTION MARGIN RATIO would (increase/decrease) to ___________%.

Use 2 decimal places; indicate in your solution sheet if the ratio would INCREASE or DECREASE.