Reference no: EM132787111

Problem 1: Assuming no change in sales volume, an increase in company's per-unit contribution margin would:

Select one:

a. decrease net income

b. decrease fixed costs

c. increase fixed costs

d. increase net income

Problem 2: At a volume of 20,000 units, Alex Department Store reported sales revenues of $1,000,000, variable costs of $300,000, and fixed costs of $260,000. The company's contribution margin per unit is:

Select one:

a. $28

b. $37

c. $35

d. $22