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  3. assume that sales are predicted to be $11,250, the

Assume that sales are predicted to be $11,250, the expected contribution margin is $4,500, and...

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Accounting

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Assume that sales are predicted to be $11,250, the expected contribution margin is $4,500, and a net loss of $750 is anticipated. The break-even point in sales ($) is: Select one: a. 13,125 O b. 12,000 O c. 6,250 O d. 8,750 e. 9,375 XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: [Y=$150,000 + $ 10XDLH; R-square = 0.11]; [Y= $190,000 + $5xMhr; R-square = 0.95); [Y=200,000+2Q; R-square=0.52). Based on this information, which cost driver do you recommend? Select one: a. Quantity produced (Q) O b. All cost drivers are the same O c. Machine hours (Mhr) d. None of them e. Direct labor hours (DLH)

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