Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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 variable cost ratio will: aut of Select one: a. not change. b. None of the given answers c. Cannot determine with the information given d. increase. e. decrease. 6 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 15,000 units for the month of December, what amount of total costs would be expected? ad out of Select one: a. None of the answers given b. $160,000 c. $169,000 d. $175,000 e. $151,000 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 variable cost ratio will: aut of Select one: a. not change. b. None of the given answers c. Cannot determine with the information given d. increase. e. decrease. 6 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 15,000 units for the month of December, what amount of total costs would be expected? ad out of Select one: a. None of the answers given b. $160,000 c. $169,000 d. $175,000 e. $151,000

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

Accounting An Introduction

Authors: Eddie McLaney, Peter Atrill

2nd Edition

0273655507, 978-0273655503

More Books

Students also viewed these Accounting questions