10. If the variable cost of Option 1 is decreased by $0.50 per kilogram and all other variables remain the same, what will happen to the profit of Option 1 at 2.5E5 kilograms? A) it will decrease B) It will increase C) It will not change 11. If the sales price is increased by $0.75 per kilogram and all other variables remain the same, what will happen to the profit of Option 1 at 2.5E5 kilograms
10. If the variable cost of Option 1 is decreased by $0.50 per kilogram and all other variables remain the same, what will happen to the profit of Option 1 at 2.5E5 kilograms? A) it will decrease B) It will increase C) It will not change 11. If the sales price is increased by $0.75 per kilogram and all other variables remain the same, what will happen to the profit of Option 1 at 2.5E5 kilograms
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:10. If the variable cost of Option 1 is decreased by $0.50 per kilogram and all other
variables remain the same, what will happen to the profit of Option 1 at 2.5E5 kilograms?
A) it will decrease B) It will increase C) It will not change
11. If the sales price is increased by $0.75 per kilogram and all other variables remain the
same, what will happen to the profit of Option 1 at 2.5E5 kilograms
A) it will decrease B) It will increase C) It will not change
12. If the fixed cost of Option 1 is decreased by $5E5 and all other variables remain the
same, what will happen to the profit of Option 1 at 2.5E5 kilograms?
A) it will decrease B) It will increase C) It will not change
![Your company is manufacturing a complex part
from an advanced material and is considering
an upgrade to the current machine. Two
options are available - the breakeven analysis
for both is shown in the graph.
1.25E+06
-Option One
-Option Two
Revenue (R) [$]
1.00E+06
7.50E+05
5.00E+05
2.50E+05
0.00E+00
0.0E+00
5.0E+04
1.0E+05
1.5E+05
2.0E+05
2.5E+05
Amount of Material Processed (A) [kg]
Cost (TC) or Revenue (R) [$]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdcb50413-80d6-469c-93cd-08f16902242b%2F6f03238e-5e5c-4f14-b083-f46118788e0b%2Fhpjgjp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Your company is manufacturing a complex part
from an advanced material and is considering
an upgrade to the current machine. Two
options are available - the breakeven analysis
for both is shown in the graph.
1.25E+06
-Option One
-Option Two
Revenue (R) [$]
1.00E+06
7.50E+05
5.00E+05
2.50E+05
0.00E+00
0.0E+00
5.0E+04
1.0E+05
1.5E+05
2.0E+05
2.5E+05
Amount of Material Processed (A) [kg]
Cost (TC) or Revenue (R) [$]
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