(ACADEMIC)rial Accounting - Spring21Time left 0:33:30Company XYZ is currently making sales of $200,000. At this level, the variable expenses were $160,000. Assume thatcompany XYZ expects sales to increase to $250,000 in the coming period with no change is expected to fixed expenses.How much is the expected change in profit?O a. Cannot be determinedO b. Increase by $10,000O c. Increase by $50,000O d. Increase by 40,000O e. Increase by $160,000XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $800,000 to $700,000, butvariable costs will increase from $10 per unit to $12 per unit. If it were to implement these changes at its currentproduction level of 50,000 units (with no change to selling price), profit would not change. What would happen to thecompany's profit if the changes were implemented, and production increased to 55,000 units?Windows buiiheO a. It will stay the same.O b. It will decrease.ENGf10144f510

Profit can be defined as the financial gain which is computed by subtracting expenses (variable and…

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 $250,000 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 $10,000 O c. Increase by $50,000 O d. Increase by 40,000 Oe. Increase by $160,000

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 $250,000 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 $10,000 O c. Increase by $50,000 O d. Increase by 40,000 Oe. Increase by $160,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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