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XYZ company is studying the profitability of a change in operation and has gathered the...

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Accounting

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XYZ company is studying the profitability of a change in operation and has gathered the following information. Current Operation: Fixed Costs: $38,000, Selling Price: $15, Variable Cost: $10, and Sales (Units): 9,000. Anticipated Operation: Fixed Costs: $48,000, Selling Price: $22, Variable Cost $12, and Sales (Units): 6,000. Should XYZ company make the change? Select one: O a. It is impossible to judge because additional information is needed. O b. No, because sales will drop by 3,000 units. O c No, because the company will be worse off by $5,000. O d. Yes, the company will be better off by $5,000. O e. No, because the company will be worse off by $22,000

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