Company XYZ produces and sells two types of calculators : Basic and Scientific The Basic has a lower selling price per unit compared to the Scientific . However , the Basic has a higher contribution margin compared to the Scientific . Due to fixed production capacity , the company has a cap on total production ability. If the company's CEO has decided to shift the sales mix towards producing more Scientific calculators . What would be the effect on total profits? a. None of the given answers b . Cannot be determined using the above information c.Total profits would increase d. Total profits would remain the same e. Total profits would decrease

Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…

A: Hypothetical example based on the plan of XYZ Company: Effect on profit=Increase.

Q: Company X has two products: Product A and product B. Product A has a higher selling price but a…

A: Solution Concept If a product line has high selling price but a lower contribution margin it implies…

Q: Jacobs Inc. is a relatively new company that has established a position in the highly competitive…

A: Profits of a company will be depends on the following factors: 1. Product produced by the company.…

Q: (1) Calculate the following variances between the budgeted contribution margin and the actual…

A: 1.E. Variable Overhead Spending Variance = Actual hours for production ( Standard Variable overhead…

Q: Company XYZ is specialized in producing and selling smart watches. The company currently has two…

A: Sales:-It is the grand total sales obtained by adding and subtracting all related discounts and…

Q: What is the target cost if target profit is 25% of sales and ECC must meet the competitive price of…

A: Target Cost  A desired profit margin is reduced from the competitive market price to estimate…

Q: Company XYZ is specialized in producing and selling smart watches. The company currently has two…

A: The commission based on determining selling price does not guarantee that the company is making…

Q: Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: Which of the following statements about operating leverage is false? O a. If the degree of operating…

A: Answer

Q: Megacorp and Gadgetron are two competing gadget manufacturers. Information about the price and cost…

A: 1) The sales volume that will result in Megacorp and Gadgetron having the same operating profit is…

Q: If Account Based Costing (ABC) is so great, why do such a small percentage of companies use it? Why…

A: Activity based costing is a type of Costing in which the overhead or the indirect cost are…

Q: Wholesaler Retailer Consumer Rial Rial Sales Per Unit 3.60 Estimated Sales per year (units) 1, 00,…

A: (a) Decision regarding the preferable distribution channel: The company should change its…

Q: Cambridge Ltd is currently suffering from a depression in the market for its products and needs to…

A: Net Income: The resultant amount after reducing all expenses of the company whether direct or…

Q: If a company is a multiproduct firm. a. can only utilize CVP analysis if the contribution margin…

A: c)  a multiproduct firm can earn a lower than expected profit though the total number of units sold…

Q: Company XYZ sells two products: AAA and BBB. Product BBB has a lower selling price but higher…

A: Following is the solution to given problem

Q: If Company XYZ decided to produce and sell more units of product BBB compared to product AAA, which…

A: Profit :-  Profit is the excess amount that we earned after selling a product at a particular price…

Q: Company X sells two products: Model A and Model B. The company has a fixed production capacity.…

A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q: Is my explanation correct? When the shit in sales toward the lower contribution margin.  In the…

A: Dear student your explanation is correct. In the sales mix, if the shift in sales to a product that…

Q: Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower…

A: The contribution margin can be expressed in either gross or per-unit terms. After deducting the…

Q: Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower…

A: Break even point = Fixed costs / Weighted average contribution margin When more units of the product…

Q: Company XYZ is specialized in producing and selling smart watches. The company currently has two…

A: Sales commission : The sales commission is determined as the amount which is based on the number of…

Q: 1. Due to change in market conditions a company finds that it can sell as many of each of its three…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…

A: XYZ company wishes to gain market share. Current Production doubled means quantity is doubled. Fixed…

Q: Company XYZ is specialized in producing and selling smart watches. The company currently has two…

A: Answer

Q: Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit…

A: Here,

Q: Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower…

A: A sales mix is the optimum proportion of the selling products as it enables the company to determine…

Q: 3. The sales manager of Alpha Electronics submitted a proposal to increase its production of digital…

A: Cost Analysis: It is  comparison of cost for supporting  strategic planning, decision making and…

Q: A paper published in the Harvard Business Review points out a new way to calculate economic profit…

A: Economic Profit: It is the profit after deducting opportunity cost from operating profit.

Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…

A: Sales:-It is the grand total sales obtained by adding and subtracting all related discounts and…

Q: Stephen, a manager, believes that if his company's revenue hadn't increased last year, it wouldn't…

A: Revenue means the amount earned by selling the goods or services. Profit means the difference…

Q: Company XYZ decided to produce and sell more units of product BBB compared to product AAA, which one…

A: Contribution is calculated as Sales less variable costs. Sale price is the price at which the…

Q: Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower…

A: Contribution is the excess amount of sale over variable cost. Basically, it is the sum of fixed cost…

Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…

A: Answer

Q: As a manager, you have to choose between two options for new production equipment. Machine A will…

A:

Q: operating leverage factor t

A: Operating leverage factor = (Sales - Variable costs)/(Sales - Variable costs) - Fixed costs

Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…

A: Given, Strategy: Company wants to increase the market share by Doubling the current production and…

Q: Titan Computer Company manufactures a tablet computer called All Pad. The company sells these…

A: Competitive strategy: Cost leadership and differentiation are the two competitive strategies. In…

Q: Which of the following statements about operating leverage is false? O a. If the degree of operating…

A: Operating Leverage = %change in EBIT / % change in sales

Q: C) Going back to the original data, the team speculates that they might be able to achieve…

A: The latest income statement of Carolina Manufacturing company is given to us. The income statement…

Q: Which of the following statements about operating leverage is false? O a. All of the given answers…

A: Degree of operating leverage means the division of contribution with net income. It means that how…

Q: The management of a firm wants to introduce a new product. The product will sell for $5 a unit and…

A: The break even point is the point in which the company will neither ear profit nor incur loss. There…

Q: stion Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a…

A: Contribution is the total amount of profit or loss and fixed cost of the entity. It is obtained when…

Q: Which of the following statements about operating leverage is false? O a. Keeping all factors…

A: Operating leverage: It is a cost account accounting method or technique used by the firm to measure…

Q: Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower…

A: Given, Company trades in for 2 products with different contribution margin,   Contribution margin of…

Q: Jacobs Inc. is a relatively new company that has established a position in the highly competitive…

A: The correct answer is Option (b).

Q: Peyton Company manufactures Phone X and Phone Y. Peyton can sell all it can make of either. Based on…

A: Key factor refers to a factor of production whose availability is limited.

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.