Company XYZ is currently operating with a 30% contribution margin. The company is planning an upgrade in its production facilities, which is expected to increase sales by $15,000. However, this upgrade is expected to increase fixed costs of $2,500. What would be the expected change in profit? a. Increase by $3,500 b. Increase by $12,500 @c. Increase by $2,000 d. Decrease by $2,500 e Increase by $15,000 Mazoon Company decided to use the high-low cost estimation method to analyze its mixed costs. During the year 2020, the highest level of activity at peak season was in August (40,500 labor hours for a total cost of $120,400) and the lowest level of activity was in November (13,000 labor hours for a total cost of $79,150). What is the estimated total cost for Mazoon Company at an expected operating level of 30,000 labor hours? a. None of the answers given b. $45,000 c. $107,650 d $101.200 e $99.775 The following information is available for Mazoon company's electricity cost for operating its heavy machinery over the last quarter of the year 2020. Month Machine hours Electricity cost September 1,800 $ 10,900 October 8,800 $ 18,200 November 1,100 $ 8,200 December 6,600 $ 17,200 Using the high-low method, the estimated variable cost per machine hour for total cost of electricity is approximately: a $1.3 b. None of the given answers C. $2.07 d. $0.76 e $1.64 Mazoon Company has fixed costs of $10,000 and a breakeven point of 500 units. If the company plans to produce 600 units, and sales increase by 10%, Its operating income will increase by: a. None of the given answers b. 20% C. 60% d. 1096 e. 30% If sales are $26,000, variable costs are $8,000, and fixed costs are $3,500, the contribution margin ratio is: (rounded to the nearest number) a. 13% b. 3196 c. 56% d. None of the given answers e. 69% . Mazoon Company sells yachts. During the current year, 100 yachts were sold resulting in $420,000 of sales revenue $120,000 of variable costs, and $180,000 of fixed costs. The number of yachts that must be sold to achieve $150,000 of operating income is: a. 110 units b. None of the given answers c. 3300 units d. 100 units e 40 units 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 $3,000. 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? a. Decrease by $6,000 b. Increase by $1,000 c. Increase by $2,000 d. No change e Decrease by $5,000 The contribution margin ratio is 60%. If total fixed costs are $22,000, then what is the total cost (S) of producing and selling 60,500 units? The selling price is $4 per unit. O a. 96,800 b. 145,200 C. 123,200 d. None of the given answers e 220,000 Masirah Company sold 5,000 units of its product resulting in $70,000 of sales revenue, $15,000 of variable costs, and $14,000 of fixed costs. If variable costs decrease by $1 per unit, the new margin of safety in units is: a. 3,727 units b. 1,167 units C. 5,000 units d. 3,833 units e. None of the given answers Mazoon Company sells 800 units resulting in $300,000 of sales revenue, $200,000 of variable costs, and $36,000 of fixed costs. Breakeven point in units is: a. None of the given answers b. 375 units c. 125 units d. 288 units e. 45 units