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?
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- 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 BCompany 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? Increase by $12,500 a. b. Increase by $6,500 Increase by $15,000 O d. Decrease by $6,000 O e. Decrease by $2,500
- 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 making sales of $200,000. At this level, the variable expenses viere $160,000 . Assume that company XYZ expects sales to increase to $450,003 in coming period with no change is expected to fixed expenses. How much is the expected change in profit ? a- Increase by $ 10,000 b -Increase by 40,000 C- increase by $ 50,000 D-be determined E- Increase by $160,000Question 3: Mirbat Company's financial information is given in the table below. Year 2020 2021 Sales (OMR) Fixed Costs 445000 500000 105000 150000 Variable Costs 245000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) Margin of safety at a profit of OMR 50000 b) Profit when sales are OMR. 300000.
- Compony XYZ is currently making sales of $ 200,000. At this level, the variable experies were $ 100.000 company XYZ expects sales to increase to $ 250,000 in the coming period with no changer is expected to find expenses. How much is the expected change pront:O e. operating income will decrease. XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 5%, by how much will profits increase? O a. 15% O b. 90% 30% O d. 60% O e. None of the given answer is correct. NEXT PAGE AGE PoCompany XYZ is currently making sales of $200,000. At this level, the variable expenses were $160,000. Assume that company XYZ expects sales to increase to $450,000 in the coming period with no change is expected to fixed expenses. How much is the expected change in profit? a. Cannot be determined O b. Increase by $160,000 O c. Increase by $10,000 d. Increase by $50,000 е. Increase by 40,000
- PROBLEM 2. Outlast Company's projected profit for the coming year follows: Per Unit Total P200,000 (120,000) 80,000 (64,000) P 16,000 Sales Less: Variable costs P20 (12) P 8 Contribution margin Less Fixed expenses Income 4. Suppose Outlast would like to earn operating income equ to 20 percent of sales revenue. How many units must be sold for this goal to be realized? 5. For the projected level of sales, compute the margin of safety.Be sure your inputs are set to the following: Plant Cost $4,000,000 year 0 Sales (units) 80,000 year 1 Selling Price $25 each Sales Growth per year Variable Costs 40% of revenu SG&A 50% of revenue SG&A Declines 2% per year Depreciation 5 years, straight-line Tax Rate 35% What is the Sales Growth percentage that results in total net income closest to 0? Report your answer to the nearest 0.1% with no extra words or punctuation. Examples of Correct Answers: 22.3% 22.3 Answer: Change your inputs to the following: Plant Cost $3,000,000 year 0 Salor fumitalQuestion 3: Oman Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs 445000 Variable Costs : 2020 105000 245000 2021 500000 150000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) P/V ratio, b) В.Е.P. c) Sales required to earn a profit of OMR 45000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 300000.