70.2K

Verified Solution

Link Copied!

Question 28 Not yet answered 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) Marked out of 100 Flag question Select one: a. 2,800 b. 467 c. 653 d. 1.680 e 3.920 Question 29 Not yet wered XYZ Company uses the high-low method to analyze mixed costs. During the year, the highest level of activity was in May and the lowest level of activity was in February. In February, the company worked 11,00 hours and had a total cost of $46,300. In May, the company worked 27.000 hours and had a total cost of $110,300. What is the estimated total cost at an operating level of 22,000 hours? Marked out of 100 Flag question Select one: O a. 90,300 b. $94,300 O c598,300 d. $49,050 e. None of the answers given Question 30 Not yet answered XYZ Company's single product has a selling price of $25 per unit. Last year the company reported profit of $200,000 and variable expenses totaling $960,000. The product has a 40% contribution margin ratio, Because of competition, XYZ Company will be forced in the current year to reduce its selling price by $2 per unit. How many units must be sold in the current year to earn the same profit as was eamed last year? Marked out of Flag question Select one: a. 80,000 b96,000 e c. 116,000 d. 44,000 e. 64.000

Answer & Explanation Solved by verified expert

See Answer