Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 25 Not yet XYZ Company uses the high low method to analyze the mixed cost. According to the cost formula derived the total fixed

image text in transcribed
Question 25 Not yet 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 $79,000 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? answered Marked out of 1.00 P Flag question Select one: O a. None of the answers given O b. 12,000 c. 11,000 O d. 7.900 O e. 11,500 Question 26 Not yet answered XYZ company is studying the profitability of a change in operation and has gathered the following information. Anticipated Operation: Fixed Costs: 538,000, Selling Price: $16, Variable Cost: $10, and Sales (Units): 9,000. Current Operation: Fixed Costs: 548,000, Selling Price: $22. Variable Cost: $12, and Sales (Units): 6,000. Should XYZ company make the change? Marked out of 100 P Flag question Select one: O a. Yes, the company will be better off by $4,000. b. It is impossible to judge because additional information is needed Oc No, because sales will drop by 3,000 units. d. No, because the company will be worse off by $22,000. e. No, because the company will be worse off by $4,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Decision Making and Motivating Performance

Authors: Srikant M. Datar, Madhav V. Rajan

1st edition

132816245, 9780132816243, 978-0137024872

More Books

Students also viewed these Accounting questions