XYZ Company sells a single product for $100 each. The variable expense is $70 per unit. It is now selling 10,000 units. Currently, its operating leverage is 1.5, and contribution margin ratio is 0.3.

The companys fixed expenses are a step cost, and they are:

Sales and production units up to 12,000 12,001 to 20,000

Fixed Expenses $100,000 $140,000

If the company sales increase by 50% (by 5,000 units or $500,000), the companys income will:

	A.	increase by 22.5%.
	B.	increase by $150,000.
	C.	increase by $110,000.
	D.	increase by 75%.

Last month, Jeff searched for a new job. He contacted three companies (X, Y, and Z). He incurred a total of $1,250 in the searching process ($500 for Company X, $300 for Company Y as indicated below; and $450 for Company Z). Later, Jeff received offers from Companies X and Y. He is trying to decide which one he will accept. The following information is available:

Job Offer X Job Offer Y

(1) Base salary $40,000 $40,000

(2) Work environment Competitive Collaborative

(3) Moving allowance $2,000 $2,000

(4) Signing bonus $1,000 $0

(5) Job search costs $500 $300

Which of the above items are relevant information to Jeff in making the decision of which offer to take?