Cartier Corporation currently sells its products for $50 per unit. The company’s variable costs are $20 per unit. Fixed expenses amount to a total of $5,000 per month. What is the company’s contribution margin ratio?   multiple choice 1 40% 60% 100% 20%

1. Mower Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling Price $120 100% Variable Expenses $48 40% Contribution Margin $72 60% Fixed expenses are $567,000 per month. The company is currently selling 9,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept a decrease in their salaries of $84,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 600 units. What should be the overall effect on the company's monthly net operating income of this change? A. Decrease of $146,400 B. Increase of $21,600 C. Increase of $77,400 D. Increase of $669,600

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Data for Hermann Corporation are shown below:     Per Unit Percent of Sales Selling price $ 55 100% Variable expenses 33 60 Contribution margin $ 22 40%   Fixed expenses are $71,000 per month and the company is selling 4,100 units per month.   Exercise 6-5 (Algo) Part 2 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $4 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used?