Company XYZ currently produces and sells 40000 units. At this level, the total contribution margin is $320,000 while the total fixed costs $80,000. If sales are expected to increase by 40% in the next period, how much would the new profit be ($)? O a. 368,000 Ob. 272,000 О с. 304,000 O d. None of the given answers O e. 336,000

Principles of Accounting Volume 2
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Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...
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O e. None of the given answers
CLEAR MY CHOICE
Company XYZ currently produces and sells 40 000 units. At this level, the total contribution margin is $320,000
while the total fixed costs $80,000. If sales are expected to increase by 40% in the next period, how much would the
new profit be ($)?
O a.
368,000
O b. 272,000
O c. 304,000
O d. None of the given answers
O e. 336,000
DUS PAGE
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Transcribed Image Text:O e. None of the given answers CLEAR MY CHOICE Company XYZ currently produces and sells 40 000 units. At this level, the total contribution margin is $320,000 while the total fixed costs $80,000. If sales are expected to increase by 40% in the next period, how much would the new profit be ($)? O a. 368,000 O b. 272,000 O c. 304,000 O d. None of the given answers O e. 336,000 DUS PAGE NEXT PAGE Type here to search acer
Z Co.manufactures thr
sting, has identified five activities (and related cost drivers). Each activity, its
identified below.
Activlty
Cost
Cost Driver
Material handling
$225,000
Number of parts
Material insertion
2,475,000
Number of parts
Automated machinery
840,000
Machine hours
Finishing
170,000
Direct labor hours
Packaging
170,000
Orders shipped
Total
$3.880.000
The following information pertains to the three product lines for next year:
Y
Units to be produced
10,000
5,000
2,000
Orders to be shipped
1,000
500
200
Number of parts per unit
10
15
25
Machine hours per unit
1
3
Labor hours per unit
2
2
2
Under an activity-based costing system, what is the per-unit overhead cost of Y?
pe here to search
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立
Transcribed Image Text:Z Co.manufactures thr sting, has identified five activities (and related cost drivers). Each activity, its identified below. Activlty Cost Cost Driver Material handling $225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $3.880.000 The following information pertains to the three product lines for next year: Y Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 3 Labor hours per unit 2 2 2 Under an activity-based costing system, what is the per-unit overhead cost of Y? pe here to search acer 立
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