QUESTION 45 If the contribution margin ratio increases, A. the variable cost ratio decreases B. the break-even point increases C. fixed costs must have decreased OD. price must have decreased E. more units must be sold to break even QUESTION 46 A company has had stable sales and production for several years. Next year, sales are expected to increase by at least 50%. Assuming that the company does not change it's policy for desired ending inventories of finished product and direct materials purchases, what will be the likely effect on the desired ending inventory of finished product? A. It will increase B. It will decrease C. It will stay the same D. None of these E. It will be twice the size of the desired ending inventory of raw materials. QUESTION 47 A company expects the following sales for the coming year:First QuarterUnits: 40,000Average Selling Price: $5Second QuarterUnits: 30,000Average Selling Price: $5Third QuarterUnits: 60,000Average Selling Price: $5Fourth QuarterUnits: 80,000Average Selling Price: $6Budgeted sales revenue for the year is: A. $1,050,000 B. $1,260,000 OC. $1,155,000 O D. $1,130,000 E. It is impossible to tell from this information