Review questions - Topic 2 - AnswersFill-in-the-Blank Equations 1. Variable cost per unit= Change in total with changes in the activity level2. Fixed cost= Total costs –(Variable cost per unit × Units produced)3. Contribution margin = Sales –Variable costs4. Contribution margin ratio = Contribution margin/sales5. Change in income from operations = Change in sales dollars× Contribution margin ratio6. Unit contribution margin= Sales price per unit –Variable cost per unit7. Change in income from operations = Change in sales units× Unit contribution margin8. Break-even sales (units)= Fixed costs/unit contribution margin9. Break-even sales (dollars) = Fixed costs/ Contribution margin ratio10. Sales (units) = (Fixed costs+ Target profit)/unit contribution margin Determine if each of the following would be considered a fixed cost, variable cost, or mixed cost. a. The company’s lawyer charges a base fee of $400 per month plus $20 for each hour of legal service provided.