Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ Company's product has a contribution margin per unit of $12 and a variable cost ratio of 90%. What is the selling price of the

image text in transcribed
XYZ Company's product has a contribution margin per unit of $12 and a variable cost ratio of 90%. What is the selling price of the product? Select one: a. $120. b. $28.125. C. $37.5. d. $60. e. $22.5 XYZ Company's single product has a selling price of S15 per unit. The fixed expenses were $100,000. This year the company reported a net operating income of $40,000. If sales are predicted to increase by 10% next year, how much would the increase in profits be in ($)? Select one a. 6,000 b. 14,000 c. 5,600 d. No change in income 0.4,000 XYZ Company uses the high low method to analyze the mixed cost. According to the cost formula derived, the total fixed cost is $10,000. Total cost at the high level of activity was $67,000 and at the low level of activity was $25,000. If the low level of activity was 2,500 units, what was the high level of activity in units? Select one: a. 10,500 b. 9,500 c. None of the answers given d. 10,000 e. 6,700

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi

3rd Edition

978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856

More Books

Students also viewed these Accounting questions

Question

Accounts

Answered: 1 week ago