XYZ Company's single product has a selling price of $25 per unit. Last year the company reported profit of $125,000 and variable expenses totaling $600,000. The product has a 40% contribution margin ratio. Because of competition, XYZ Company will be forced in the current year to reduce its selling price by $2 per unit. How many units must be sold in the current year to earn the same profit as was earned last year? an Select one a. 60,000 b. 40,000 50,000 d. 27,500 e. 72,500 XYZ Company's accountant is estimating next period's total overhead costs (7). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: [Y-$150,000+ $10XDLH: R-square - 0.111: 1Y = $190,000 + $5xMhr, R-square = 0.521; [Y=200,000+20; R-square=0.95). Based on this information, which cost driver do you recommend? Select one: a. Quantity produced (0) b. Machine hours (Mhr) c Direct labor hours (DLH) d. All cost drivers are the same e None of them All else being equat, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases? Select one: a. Both unit contribution margin and contribution margin ratio decrease. b. Both unit contribution margin and contribution margin ratio are unchanged. Oc Unit contribution margin increases and contribution margin ratio increases d. None of the given answers. e. Unit contribution margin decreases while contribution margin ratio increases. XYZ Bakery bakes breads that are sold to local restaurants and grocery stores in Muscat. When 300 breads are baked, the average cost is $1.25 per bread. When 900 breads are baked, the average cost is $0.65 per bread. What is the total cost when 500 breads are baked? Select one: a. None of the answers given b. 9462.50 C. $625.00 d. $445.00 e. $325.00 Based on analyzing the relationship of total factory overhead (Y) to direct labor hours (%), the following relationship was found: Y = $2,000 + $5X. The $5 in the equation represents: Select one: a. Variable factory overhead costs per direct labor hour, b. None of the answers given Total variable factory overhead costs. d. Fixed factory overhead costs per direct labor hour e. Total fixed factory overhead costs