Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin is $320,000 while the total fixed costs ?($) $80,000. If sales are expected to increase by 10% in the next period, how much would the new profit be 336,000 a O 272,000 b O 304,000 cO None of the given answers d O 400,000 e O

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin is $320,000 while the total fixed costs
?($) $80,000. If sales are expected to increase by 10% in the next period, how much would the new profit be
336,000 a O
272,000 b O
304,000 cO
None of the given answers .d O
400,000 .e O
Transcribed Image Text:Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin is $320,000 while the total fixed costs ?($) $80,000. If sales are expected to increase by 10% in the next period, how much would the new profit be 336,000 a O 272,000 b O 304,000 cO None of the given answers .d O 400,000 .e O
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