XYZ company is studying the profitability of a change in operation and has gathered the following information, Anticipated Operation: Fixed Costs: $38,000, Selling Price: $16, Variable Cost: $10, and Sales (Units): 9,000. Current Operation: Fixed Costs: $48,000, Selling Price: $22. Variable Cost: $12, and Sales (Units): 6,000. Should XYZ company make the change? Select one: O a. No, because the company will be worse off by $4,000. O b. No, because the company will be worse off by $22,000. O c. It is impossible to judge because additional information is needed. d. No, because sales will drop by 3,000 units. O e. Yes, the company will be better off by $4,000. 0 XYZ Company's accountant is estimating next period's total overhead costs (V). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: Y-$150,000 + $ 10xDLH; R-square = 0.111: [Y= $190,000 $5xMhr: R-square = 0.95); TY=200,000+20: R-square-0.52). Based on this information, which cost driver do you recommend? Select one: O a. Quantity produced (0) b. None of them c. Direct labor hours (DLH) d. All cost drivers are the same O e. Machine hours (Mhr)