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XYZ Company's single product has a selling price of $15 per unit. The fixed expenses were $135,000. This year the company reported a net operating

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XYZ Company's single product has a selling price of $15 per unit. The fixed expenses were $135,000. This year the company reported a net operating income of $75,000. If sales are predicted to increase by 10% next year, how much would the increase in profits be in ($)? Select one: O a: 6,000 O b. 11,667 O c. No change in income O d. 7,500 O e. 21,000 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: $15, Variable Cost: S10, and Sales (Units): 9,000. Anticipated Operation: Fixed Costs: $48,000, Selling Price: $22, Variable Cost: $12, and Sales (Units): 6,000. Should XYZ company make the change? Select one: O a. No, because sales will drop by 3,000 units O b. Yes, the company will be better off by $5,000 O c. No, because the company will be worse off by $5,000 O d. It is impossible to judge because additional information is needed. Oe. No, because the company will be worse off by $22,000

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