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Company XYZ produces and sells headphones. The company has total fixed costs of $112,000. Each headphone sells for $35 per unit and has variable costs

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Company XYZ produces and sells headphones. The company has total fixed costs of $112,000. Each headphone sells for $35 per unit and has variable costs of $25 per unit. Next year XYZ Company wishes to earn an operating income that equals 10% of fixed costs. How many units must be sold to achieve this target income level? (rounded to the nearest number) Select one: a. 10,080 O b. 12,320 O c. 11,200 O d. 1,867 e. 2,053 Company XYZ sells two products: AAA and BBB. Product AAA has a higher selling price but lower contribution margin compared to product BBB. Assume that the factory has fixed production capacity. If Company XYZ decided to produce and sell more units of product BBB compared to product AAA, which one of the following is likely to happen? Select one: a. None of the given answers b. Total profit will increase c. Total profits will decrease d. Total profits will remain the same e. Total sales will decrease

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