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XYZ company is studying the profitability of a change in operation and has gathered the following information. Current Operation: Fixed Costs: $38,000, Selling Price: $16,

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XYZ company is studying the profitability of a change in operation and has gathered the following information. Current Operation: Fixed Costs: $38,000, Selling Price: $16, Variable Cost: $10, and Sales (Units): 12,000. Anticipated Operation: Fixed Costs: 548,000, Selling Price: $22. Variable Cost: $12, and Sales (Units): 6,000. Should XYZ company make the change? Select one: a. It is impossible to judge because additional information is needed. 1 b. No, because the company will be worse off by $4,000. c. Yes, the company will be better off by $6.000 d. No, because sales will drop by 6.000 units. e. No, because the company will be worse off by $22.000

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