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Company XYZ expects the profit for next year to be higher than this year's profit....

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Accounting

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Company XYZ expects the profit for next year to be higher than this year's profit. Assume that the selling price per unit, variable cost per unit, and total fixed costs will not change. Which one of the following is false? Select one: O a. degree of operating leverage next year will be lower than this year O b. contribution margin ratio next year will be the same as this year c. total fixed cost next year will be the same as this year O d. margin of safety next year will be higher than this year e. breakeven point next year will be higher than this year 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 (hr), and the third is based on quantity produced (Q). The results were: [Y=$95,000 + $9XDLH; R-square = 0.85); [Y= $120,000 + $5xMhr; R- square = 0.15); [Y=190,000+20; R-square=0.45). How much of the variations on the overhead costs is explained by the quantity produced (Q)? Select one: a. 45% b. None of the answers given c. 85% d. 15% e. 55%

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