Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 28 ed xyz company is studying the profitability of

28 ed XYZ company is studying the profitability of a change in operation and has...

50.1K

Verified Solution

Question

Accounting

image
28 ed XYZ company is studying the profitability of a change in operation and has gathered the following information. Current Operation: Fixed Costs: $38,000, Selling Price: $16, Variable Cost: $10, and Sales (Units): 12,000. Anticipated Operation: Fixed Costs: $48,000, Selling Price: $22, Variable Cost: $12, and Sales (Units): 6,000. Should XYZ company make the change? out of on Select one: a. It is impossible to judge because additional information is needed b. No, because the company will be worse off by $4,000 c. Yes, the company will be better off by $6,000, d. No, because sales will drop by 6,000 units. e. No, because the company will be worse ott by $22,000. on 29 XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $10 per unit, and fixed costs of $300,000. The company is considering increasing the price of its units to S60 per unit. If the price is changed, how many units will the company need to sell for profit to remain the same as before the price change? wered arhed out of 10 Flag Select one: a. None of the given answers. . 0,375 0.12,000 d. 10,000 e. 7,500

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students