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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: $48,000, 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. 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. XYZ Company uses the high-low method to analyze mixed costs. During the year, the highest level of activity was in May and the lowest level of activity was in February. In February, the company worked 11,00 hours and had a total cost of $46,300. In May, the company worked 27,000 hours and had a total cost of $110,300. What is the estimated total costat an operating level of 23,000 hours? Select one: a. $98,300 b. $49,300 c. $102,300 d. None of the answers given e. $94,300 Which one of the following cost estimation methods is the most accurate? Select one: a. Regression analysis. b. Scattergraph C. The high-low method. d. Subjective forecasting. Company XYZ expects the profit for next year to be lower than this year's profit. Assume that the selling price per unit, variable cost per unit, and total fixed costs will not change. Which one of the following is false? Select one: a. contribution margin ratio next year will be the same as this year b. breakeven point next year will be the same as this year c. margin of safety next year will be higher than this year d. total fixed cost next year will be the same as this year e degree of operating leverage next year will be higher than this year

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