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Comparvy XYZ sells two products AAA and BOB. Product AAA has a lower selling price but higher contribution margin compared to product BBB. Assume that

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Comparvy XYZ sells two products AAA and BOB. Product AAA has a lower selling price but higher 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 AAA compared to product BBB, which one of the following is likely to happen? Select one: a. None of the given answers b. Total sales will increase c. Total profits will decrease d. Total profits will remain the same e. Total profit will increase After a company reaches the breakeven point Select one a. The total contribution margin is negative b. The foxed cost is equal to zero c. The contribution margin ratio is negative d. The contribution margin per unit is less than the fixed costs per unit e. The total operating income is positive All else being equal, a $10.00 increase in a product's variable expense per unit accompanied by a $10.00 increase in its selling price per unit will: Select one: a. decrease the degree of operating leverage. b. increase the break-even volume. chave no effect on the total contribution margin. d. None of the given answers. e have no effect on the contribution margin ratio. XYZ Company's single product has a selling price of $15 per unit. The fixed expenses were $135,000. This year the company reported a net operating income of $75,000. If sales are predicted to increase by 10% next year, how much would the increase in profits be in ($)? son Select one: a. No change in income b. 7,500 C 6,000 d. 11,667 e 21,000 Following are utilities costs for different level of machine hours: $225 for 5 hours: $230 for 6 hours: $235 for 7 hours; and $240 for 8 hours. This cost is best described as Select one: a. Mixed b. Fixed c None of the answers given d. Direct e. Variable XYZ Company uses the high low method to analyze the mixed cost. According to the cost formula derived, the total fixed cost is $10,000. Total cost at the high level of activity was $55,000 and at the low level of activity was $25,000. If the low level of activity was 2,500 units, what was the high level of activity in units? Select one: a. 8,000 b. None of the answers given c. 8.500 d. 5,500 e. 7,500

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