Company XYZ made total sales of $250,000 during the month of December. The company also incurred total expenses of $210,000. Of that amount 60% was fixed expenses. Company XYZ expects sales to increase by 13% next month. What is the expected operating profit, in ($) value, next month? Select one: a. 61,580 b. 45,200 O c. 40,000 O d. None of the given answers e. 166,000

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ISBN:9781947172609
Author:OpenStax
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Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month...
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e. $414,000
Company XYZ made total sales of $250,000 during the month of December. The
company also incurred total expenses of $210,000. Of that amount 60% was
fixed expenses. Company XYZ expects sales to increase by 13% next month.
What is the expected operating profit, in ($) value, next month?
Select one:
O a. 61,580
O b. 45,200
O c. 40,000
O d. None of the given answers
e. 166,000
Transcribed Image Text:e. $414,000 Company XYZ made total sales of $250,000 during the month of December. The company also incurred total expenses of $210,000. Of that amount 60% was fixed expenses. Company XYZ expects sales to increase by 13% next month. What is the expected operating profit, in ($) value, next month? Select one: O a. 61,580 O b. 45,200 O c. 40,000 O d. None of the given answers e. 166,000
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