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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,
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): 9,000. Anticipated Operation: Fixed Costs: $48,000 Selling Price: $22. Variable Cost $10, and Sales (Units): 6,000 Should XYZ company make the change? Select one: O a. No, because the company will be worse off by $24,000. b. Yes, the company will be better off by $8,000. O c No, because the company will be worse off by $8,000. O d. It is impossible to judge because additional information is needed. e. No, because sales will drop by 3,000 units
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