Company XYZ is currently making sales of $200,000. At this level, the variable expenses were $160,000. Assume that company XYZ expects sales to increase to $450,000 in the coming period with no change is expected to fixed expenses. How much is the expected change in profit? O a. Cannot be determined O b. Increase by $160,000 С. Increase by $10,000 d. Increase by $50,000 е. Increase by 40,000 O O O O

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ISBN:9781947172609
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Chapter10: Short-term Decision Making
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Company XYZ is currently making sales of $200,000. At this level, the variable expenses were $160,000.
Assume that company XYZ expects sales to increase to $450,000 in the coming period with no change is
expected to fixed expenses. How much is the expected change in profit?
a.
Cannot be determined
O b.
Increase by $160,000
O c.
Increase by $10,000
d. Increase by $50,000
е.
Increase by 40,000
Transcribed Image Text:Company XYZ is currently making sales of $200,000. At this level, the variable expenses were $160,000. Assume that company XYZ expects sales to increase to $450,000 in the coming period with no change is expected to fixed expenses. How much is the expected change in profit? a. Cannot be determined O b. Increase by $160,000 O c. Increase by $10,000 d. Increase by $50,000 е. Increase by 40,000
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