XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $600,000 to$500,000, but variable costs will increase from $12 per unit to $14 per unit. If it were to implement thesechanges at its current production level of 50,000 units (with no change to selling price), profit would notchange. What would happen to the company's profit if the changes were implemented, and productiondecreased to 45,000 units?O a.It will stay the same.O b. It will decrease.O c.none of the given answersO d. It will increase.

Cost that changes irrespective of production level are called fixed costs whereas costs that changes…

Answered: change. What would happen to the…

change. What would happen to the company's profit if the changes were implemented, and production decreased to 45,000 units?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 9EB: Baghdad Company produces a single product. They have recently received the result of a market survey...

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