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XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. The company
XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. The company is considering increasing the price of its units to $70 per unit. If the price is changed, how many units will the company need to sell for profit to remain the same as before the price change? Select one: a. 11,250 b. 7,500 O c. 9,000 d. 10,000 e. None of the given answers. XYZ Company incurred the following costs for the month of August when it observed an activity level of 5,000 units: Variable costs $32,500; Fixed costs $25,000; Mixed costs $21,500; Total costs $79,000. During October, the activity level was 16,000 units, and the total costs incurred were $178,000. If the activity level were expected to be 8,000 units for the month of December, what amount of total costs would be expected? Select one: a $106,000 b. $133,000 c. $115,000 d. None of the answers given O e. $124,000
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