Hunter Inc. sells a unique product with the following information available:
Sales price – $85 per unit
Variable costs- $25 per unit
Fixed costs- $10,000
Units produced and sold – 1,250
1. If one more unit is sold, net income will:
a) decrease by $33
b) increase by $52
c) increase by $60
d) decrease by $8
2. What is the contribution margin ratio?
a) 41.67%
b) 2.40%
c) 70.59%
d) 61.18%
Please provide detailed analysis.