Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin is $320,000 while the total fixed costs $80,000. If sales are expected to increase by 50% in the next period, how much would the new profit be ($)?

FINANCIAL ACCOUNTING
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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
$80,000. If sales are expected to increase by 50% in the next period, how much would the new profit be ($)?
O a. 336,000
O b. None of the given answers
Oc 304,000
O d. 272,000
O e. 400,000
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 $80,000. If sales are expected to increase by 50% in the next period, how much would the new profit be ($)? O a. 336,000 O b. None of the given answers Oc 304,000 O d. 272,000 O e. 400,000
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