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 15 and contribution margin ratio is 0.3. The company's 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 company's income will: O A increase by 75% OB.increase by $150,000 O Increase by $110,000 O D. increase by 22,5% QUESTION 24 Last year Easton Company reported sales of $800,000, a contribution margin ratio of 30% and a net operating Income of $60,000, Based on this information, the margin of safety was O A $160,000 O B. $200,000 OC. 240,000 O D.5100,000 QUESTION 26 Center Company sells a single product The selling price of the product is 525 per unit. Variable cost is 517 por unit its total fixed costs are $11,000. Last month. the company sold 2,000 units of the product and obtained a 55,000 profit Amanager has proposed the following actions for the upcoming month Improve the quality of the product. It will cause a S3 increase of per unit variable cost and a $2,000 Increase of total fixed cost Set the seling price at $27 If the above suggestions are adopted, 1 is estimated that the demand for this product will increase by 500 units for the upcoming month W the manager's proposal is adopted the company's income will O A decrease by 5800 O B. Increase by $1,500 Oc decrease by $500 OD. decrease by 51,500 Lon