1. If the contribution margin is greater than zero

A. the selling price of each product is less than the variable cost per unit. B. total variable costs are less than sales revenue. C.the fixed costs are greater than variable cost.

2. Charlie Shine has written a self-improvement book. The following are its pricing and cost details:

Selling price		$18.00 per book
Variable costs per unit:
Production		$3.50
Selling and administrative		$1.90
Fixed costs:
Production		$33,600 per year
Selling and administrative		15,540 per year

Charlie Shine is currently selling 5,200 books per year. What impact would a 22% increase in sales have on profit?

a. Increase by 22% B. Increase by 100% C. Increase by $20,592 D. Increase by $14,414