Company XYZ sells two products: AAA and BBB. Product AAA has a lower selling price...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Company XYZ sells two products: AAA and BBB. Product AAA has a lower selling price but higher contribution margin compared to product BBB. Assume that the factory has fixed production capacity. If Company XYZ decided to produce and sell more units of product AAA compared to product BBB, which one of the following is likely to happen? Select one: O a. Total profit will increase O b. Total profits will remain the same O c. None of the given answers O d. Total sales will increase e. Total profits will decrease Company XYZ produces and sells headphones. The company has total fixed costs of $112,000. Each headphone sells for $140 per unit and has variable costs of $100 per unit. Next year XYZ Company wishes to earn an operating income that equals 40% of fixed costs. How many units must be sold to achieve this target income level? (rounded to the nearest number) Select one: O a. 3,920 O b. 467 O c. 653 O d. 1,680 e. 2,800
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.