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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
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 20,000 hours? Select one: a. $48,550 b. None of the answers given c. $86,300 d. $90,300 e. $82,300 Company XYZ sells two products: AAA and BBB, Product AAA has a higher selling price but lower contribution margin compared to product BBB. Assume that the factory has fixed production capacity. If Company XYZ decided to produce and sell more units of product AAA compared to product BBB, which one of the following is likely to happen? Select one: a. None of the given answers b. Total profit will increase c. Total profits will remain the same d. Total profits will decrease e. Total sales will decrease
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