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Mazoon Company has fixed costs of $12,000 and a breakeven point of 600 units. If the company plans to produce 900 units, and sales increase
Mazoon Company has fixed costs of $12,000 and a breakeven point of 600 units. If the company plans to produce 900 units, and sales increase by 10%, its operating income will increase by: O a. 60% O b. 10% O c. 30% O d. 20% O e. None of the given answers 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 $9,000. 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 $5.000 O b. No change OC. Increase by $1,000 O d. Decrease by $6,000 O. Increase by $2.000
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