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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
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 ed. 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
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