1. If a company increases its fixed costs for Product B, then the contribution margin per unit will
a. increase.
b. decrease.
c. remain the same.
2. Rocky Mountain Waterpark sells half of its tickets for the regular price of $75. The other half go to senior citizens and children for the discounted price of $35. Variable cost per passenger is $15 for both groups, and fixed costs total $60,000 per month. What is Rocky Mountain’s breakeven point in total guests? Regular guests? Discount guests?
a. 2,000/1,000/1,000
b. 800/400/400
c. 750/375/375
d. 1,500/750/750