Grapple Inc. currently has a contribution margin of$19on its only product and sells45,000units. Grapple Inc. is considering cutting its sales price by$2to generate an increase in sales of9,000units. How will this change affect its operating income?

A.It will increase operating income by

$90,000.

B.It will increase operating income by

$63,000.

C.It will decrease operating income by

$90,000.

D.It will decrease operating income by

$63,000.

2.

The following information pertains to the Yellow Dog Corporation:

Total Units for information given	5,000
Fixed Cost per Unit	$200
Selling Price per Unit	$300
Variable Costs per Unit	$175
Target Operating Income	$100,000

What is the breakeven in sales dollars? (Round any intermediary calculations and your final answer to the nearest whole number.)

A.$2,400,000

B.$1,714,286

C.$240,000

D.2640000

Who Done It Mystery Theater sells tickets for dinner and a show for

$55

each. The cost of providing dinner is

$27

per ticket and the fixed cost of operating the theater is

$110,000

per month. The company can accommodate

9,000

patrons each month. What is the contribution margin per patron?

A.$0.51

B.$27.00

C.$28.00

D.1.96