QUESTION 11 Operating leverage predicts the effects that fixed costs have on operating income when there are no sales returns sales volume changes variable costs change O production is discontinued QUESTION 12 Pheonix was a professional classical guitar player until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier and started a small shop to make and sell Spanish guitars. The guitars sell for $700, and the fixed monthly operating costs are as follows: Rent and utilities 5810 Wages and benefits to luthier 2500 other expenses Pheonix's accountant told him about contribution margin ratios, and Pheonix understood clearly that for every dollar of sales, 50.60 went to cover his fixed costs, and anything above that point was profit. Pheonix is planning to increase the sales price to $750. What impact will the increase in sales price have on the contribution margin ratio? it will increase to approximately 62.67M. It will decrease to approximately 49.33. It will increase to 53.33%. O It will stay the same. QUESTION 13 Sunshine Blender Company Sold 3000 units in October at a sales price of $45 per unit. The variable cost is 525 per unit. Calculate the total contribution margin. O $75.000 O $60.000 O 537,500 O $135,000