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Company XYZ is a farming company. The company are famous for producing strawberries and blueberries. The variable cost of producing and selling one box of
Company XYZ is a farming company. The company are famous for producing strawberries and blueberries. The variable cost of producing and selling one box of strawberries is $3, while the variable cost of producing and selling one box blueberries is $5. Each box of strawberries is selling for $10, while a box of blueberries sells for $13. The company produces and sells 5 boxes of strawberries for every 2 boxes of blueberries. Assuming a fixed cost of $204,000. How many boxes of strawberries need to be produced and sold to achieve breakeven? Su O a. 1.600 1: O b. None of the given answers O C. 20.000 O d. 8.000 4,000 Finis Company XYZ produces and sells scientific calculators. The company is currently producing and selling 10,000 units. At this level, the fixed expenses were $10.500. In order to expand sales, the company plans to reduce the selling price by $2, which is expected to improve unit sales by 40% and achieve fixed cost savings of $2,000. Given that the company does not pay commissions to its sales people, the variable expenses per unit are expected to remain the same. What would be the impact on profit? O a. Increase by $1,000 O b. Decrease by $6,000 Oc No change O d. Decrease by $4,000 O e. Increase by $2,000
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