The following information is given for XYZ, Corp and will be used to answer the next 7 questions

Sales price per unit $8.50

Direct labor per unit $1.90

Direct materials per unit $2.60

Variable overhead per unit $1.40

Factory overhead that does not change with volume $327,600

General and administrative expenses $194,000

Question 32 options:

1. If a proposal will increase the fixed costs by 10% and lower the direct materials per unit by $.50 what would be the new breakeven point in dollars (rounded)?

2. A proposal that would cause XYZ to become more leveraged would most likely entail which of the following?

A decrease in the contribution margin per unit
	An increase in variable overhead per unit
	A second product being introduced to the manufacturing process
	An increase in fixed overhead