Company XYZ is currently operating with a 60% contribution margin. The company is planning an upgrade in its production facilities, which is expected to increase sales by $15,000. However, this upgrade is expected to increase fixed costs of $2,500. What would be the expected change in profit? O a. Increase by $12,500 O b. Increase by $6,500 O c. Increase by $15,000 O d. Decrease by $6,000 O e. Decrease by $2,500
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- Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here.Company XYZ is currently operating with a 60% contribution margin. The company is planning an upgrade in its production facilities, which is expected to increase sales by $15,000O. However, this upgrade is expected to increase fixed costs of $2,500. What would be the expected change in profit? O a. Decrease by $2,500 O b. Increase by $15,000 O C. Increase by $12,500 O d. Decrease by $6,000 O e. Increase by $6,500Company XYZ is currently operating with a 60% contribution margin. The company is planning an upgrade in its production facilities, which is expected to increase sales by $15,000. However, this upgrade is expected to increase fixed costs of $2,500. What would be the expected change in profit? O a. Increase by $15,000 O b. Decrease by $2,500 O C. Increase by $6,500 O d. Increase by $12,500 O e. Decrease by $6,000 S PAGE NEXT PAGE pe here to search hp 1- 4+ 144 トト 3 4 5 7 V 8. 9. T. D G H K L V Σ B
- Company XYZ is currently operating with a 65% contribution margin. The company is planning an upgrade in its production facilities, which is expected to increase sales by $10,000. However, this upgrade is expected to increase fixed costs of $2,500. What would be the expected change in profit? O a. Increase by $4,000 O b. Increase by $12,500 O c. Decrease by $2,500 O d. Increase by $3,500 O e. Increase by $15,000 IOUS PAGE NEXT PAGE ロー」 FI F3 F5 F6 F9 F10 @ # 2 3 4. 6. of し Q E R Y 40 F K 1. C V }ByN í M Alt つ > త N エ のCompany XYZ is currently operating with a 40% contribution margin. The company is planning an upgrade in its production facilities, which is expected to increase sales by $15,000. However, this upgrade is expected to increase ?fixed costs of $2,500. What would be the expected change in profit Decrease by $2,500 .a O Decrease by $6,000 .b O Increase by $3,500 .c O Increase by $12,500 .d O Increase by $15,000 .e OProfit would remain unchanged Company XYZ is currently operating with a 60% contribution margin. The company is planning an upgrade in its production facilities, which is expected to increase sales by $15,000. However, this upgrade is expected to increase fixed costs of $2,500. What would be the expected change in profit? O a. Increase by $15,000 Finis O b. Decrease by $2,500 C. Increase by $6,500 O d. Increase by $12,500 O e. Decrease by $6,000 DUS PAGE NEXT PAGE Type here to search IOI & 7 #3 %24 4. 8. 2 3 9. W Y U H. K V S alt ctrl alt 近
- What is the margin, turnover and ROI if the existing company performs the same next year AND it adds the proposed investment? Paul company has the following data for its most recent year end: Sales $1,400,000 Variable Expenses $756,000 Contribution Margin $644,000 Fixed Expenses $410,000 NOI $234,000 AIso Paul is considering an investment in new equipment that willcost $250,000. The new equipment is projected to produce saIes of$420,000 and have variabIe costs of 60% of sales and fixed costs of$114,000.If the company adds the new product expects the contribution margin of other product lines to drop by $18,500 per year. What is the financial advantage (disadvantage) of adding the new product? a) $25,000 b) $86,500 c)$6,500 d) $43,500Assume a company is considering adding a new product. The expected cost and revenue data for this product are as follows: Annual sales 5,000 units Unit selling price $ 60 Unit variable costs: Production $ 33 Selling $ 6 Incremental fixed costs per year: Production $ 34,500 Selling $ 45,000 If the company adds the new product, it expects the contribution margin of other product lines to drop by $15,300 per year. What is the financial advantage (disadvantage) of adding the new product? Multiple Choice $40,800 $10,200 $89,700 $25,500
- 5) Istanbul Company manufactures product A and is thinking reducing the price by 50 TL per unit for the coming year. If the price is reduced, demand is expected to increase by 6,000 units. If the price is reduced, operating profit will: Demand Selling price Incremental cost per unit A) increase by 800,000 TL B) decrease by 800,000 TL C) increase by 1,200,000 TL D) decrease by 1,400,000 TL E) increase by 1,000,000 TL Currently 40,000 units 450 300 Projected 46,000 units 400 300Southern Sisters is considering Plan 1, which is estimated to have sales of $40,000 and costs of $15,000. The company currently has sales of $38,000 and costs of $14,000. Question: The incremental increase in profit if Plan 1 is selected is _______.A company is making plans for next year, using cost-volume-profit analysis as its planning tool. Next year's sales data about its product are as follows Selling price P60 Variable manufacturing costs per unit 22.50 Variable selling and administrative costs 4.5 Fixed operating costs (60% is manufacturing costs) P159,500 Income tax rate 30% How much should sales be next year if the company wants to earn profit after tax of P23,100, the same amount that it earned last year?