Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $1,000 and the total manufacturing overhead cost is $1,220, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2,600, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) O a. 54 O b. 60 OC. None of the given answers d. 38 e. 30

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Company XYZ is currently producing and selling 100 units. At
this level, the total direct materials cost is $500, the total
direct labor cost is $1,000 and the total manufacturing
overhead cost is $1,220, which includes $800 fixed
manufacturing overhead cost. The company's total selling and
administrative expenses are $2,600, which include $1,500
fixed selling and administrative costs. Assume that the
company wishes to increase the number of units produced and
sold to 102 units, what would be the incremental cost?
(rounded to nearest ($) value)
a.
54
O b. 60
O c.
None of the given answers
d. 38
e.
30
XYZ Company had the following information for the year:
Transcribed Image Text:Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $1,000 and the total manufacturing overhead cost is $1,220, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2,600, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) a. 54 O b. 60 O c. None of the given answers d. 38 e. 30 XYZ Company had the following information for the year:
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