Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SQU E-LEARNING SYSTEM (ACADEMIC) Time left 1:51:13 Question 23 Masirah Company sold 6,000 units of its product resulting in $60,000 of sales revenue. $30,000 of

image text in transcribed
SQU E-LEARNING SYSTEM (ACADEMIC) Time left 1:51:13 Question 23 Masirah Company sold 6,000 units of its product resulting in $60,000 of sales revenue. $30,000 of variable costs, and $14.000 of fixed costs. If variable costs decrease by $2 per unit, the new margin of safety in units is: Not yet answered Marked out of 1.00 P Flag question a. 6,000 units Ob. 2,000 units Oc. None of the given answers d. 4,000 units e. 3,200 units Question 24 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 $2,000. 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? Not yet answered Marked out of 1.00 P Flag question a. Decrease by $6,000 O b. Increase by $1,000 Oc Increase by $2,000 O d. No change Ole Decrease 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

Students also viewed these Accounting questions