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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? O a. None of the given answers Ob. 20,000 O c. 8,000 O d. 1,600 O e. 4,000 Which of the following statements about margin of safety is false? O a. none of the given answers is false. O b. Margin of safety measures the difference between budgeted revenues and breakeven revenues. Oc. If only the variable cost per unit increases but the number of units sold and unit selling price and fixed cost are all constant, the margin of safety decreases. O d. If the variable cost per unit decreases but the number of units sold, unit selling price and total fixed cost are all constant, the margin of safety increases. Oe. If only the fixed costs increase but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety increases
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