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9. Graylon produces a single product that sells for $140. Variable costs per unit e qual $40. Total fixed costs are $60,000, planed sales are
9. Graylon produces a single product that sells for $140. Variable costs per unit e qual $40. Total fixed costs are $60,000, planed sales are 1,500 units with no advertising. If increase advertising expenses by $10,000 will increase sales by 500 units, operating income will increase by___? A) $10,000 B) $40,000. C) $50,000 D) $20,000. 10. Sensitivity analysis is _-. A) a way of determining what will happen if assumptions change B) a way of seeing how employeeswill be affected by changes C) a way of determining how customerswill react to new products D) a way of seeing how far from budget actual results are 11. Globus Autos sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue, $32,000 of variable costs, and $10,000 of fixed costs. If Globus reduces the selling price by $1 per unit, the new margin of safety is: A) 5,500 units B) 2,500 units C) 1667 units D) 8,000 units
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