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XYZ Company is currently selling its single product for $15. Variable costs are estimated to remain at 70% of the current selling price and fixed

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XYZ Company is currently selling its single product for $15. Variable costs are estimated to remain at 70% of the current selling price and fixed costs are estimated to be $4,800 per month. If XYZ decreases its selling price by 10%, its contribution margin ratio will: Select one: a. not change b. decrease c. Cannot determine with the information given d. None of the given answers. e. Increase 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. $124,000 b. $106,000 c. $133,000 d. $115,000 e. None of the answers given

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