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Question 7 Company XYZ produces and sells scientific calculators. The company is currently producing and selling 10,000 units. At this level, the fixed expenses were $10,500. In order to expand sales, the company plans to reduce the selling price by $2, which is expected to improve unit sales by 40% and achieve fixed cost savings of $3,000. Given that the company does not pay commissions to its sales people, the variable expenses per unit are expected to remain the same. What would be the impact on profit? Not yet answered Marked out of 1.00 question O a Decrease by $5,000 b. Increase by $2,000 Oc Increase by $1,000 Od No change e Decrease by $6,000 Question 8 Not yet wered Marked out of 0.60 Which of the following statements related to CVP chart is not true? Da The high low method is a way to estimate the cost behavior by graphically connecting the two cost amounts Identified with the highest and lowest volume levels O b. The intercept between the total cost line on a graph and the yaxis determines variable cost, OcTo determine the variable cost per unit from a graph, the change in cost is divided by the change in u nunits. Od To calculate the total fixed cost from a graph is by multiplying a level of volume by the variable cost per unit found out earlier and subtracting that from the total cost for that level of volume. Oe None of the given answers. of The slope of the total cost line determines the variable cost per unit. Flag

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