The Variable Expense Ratio The variable expense ratio is the ratio of variable expenses to sales. It can be computed by dividing the total variable expenses by the total sales, or in a single product analysis, it can be computed by dividing the variable expenses per unit by the unit selling price. Change in Variable Costs and Sales Volume What is the profit impact if Racing Bicycle can use higher quality raw materials, thus increasing variable costs per unit by $20, to generate an increase in unit sales from 500 to 880? Change in Fixed Cost, Sales Price, and Volume What is the profit impact if RBC: (1) cuts its selling price $20 per unit, (2) increases its advertising budget by $20,000 per month, and (3) increases sales from 500 to 850 units per month