Company XYZ produces and sells scientific calculators. The company is currently producing and selling 10,000 units. At this level, the fixed expenses were $10,500. In order to expand sales, the company plans to reduce the selling price by $2, which is expected to improve unit sales by 40% and achieve fixed cost savings of $2,000. Given that the company does not pay commissions to its sales people, the variable expenses per unit are expected to remain the same. What would be the impact ?on profit Decrease by $6,000 .a Increase by $1,000 .b Increase by $2,000 .C No change .d Decrease by $4,000 .e

Company XYZ produces and sells scientific calculators. The company is currently producing and selling 10,000 units. At this level, the fixed expenses were $10,500. In order to expand sales, the company plans to reduce the selling price by $2, which is expected to improve unit sales by 40% and achieve fixed cost savings of $2,000. Given that the company does not pay commissions to its sales people, the variable expenses per unit are expected to remain the same. What would be the impact ?on profit Decrease by $6,000 .a Increase by $1,000 .b Increase by $2,000 .C No change .d Decrease by $4,000 .e

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Company XYZ produces and sells scientific calculators. The company is currently producing and selling 10,000 units. At this level, the fixed expenses were $10,500. In order to expand sales, the company plans to reduce the selling price by $2, which is expected to improve unit sales by 40% and achieve fixed cost savings of $8,000. Given that the company does not pay commissions to its ?sales people, the variable expenses per unit are expected to remain the same. What would be the impact on profit 4 No change a O Decrease by $6,000 bo Increase by $2.000 cO Increase by $1,000 d O Decrease by $5,000 e O
Company XYZ produces and sells scientific calculators. The company is currently producing and selling 10,000 units. At this level, the fixed expenses were $10,500. In order to expand sales, the company plans to reduce the selling price by $2, which is expected to improve unit sales by 40% and achieve fixed cost savings of $8,000. Given that the company does not pay commissions to its sales people, the variable expenses per unit are expected to ?remain the same. What would be the impact on profit .a No change .b Decrease by $5,000 .C Increase by $2,000 .d Decrease by $6,000 Increase by $1,000 أخل اختياري
Company XYZ produces and sells scientific calculators . The company is currently producing and selling 10,000 units . At this level , the fixed expenses were $10.500 . In order to expand sales , the company plans to reduce the selling price by $2, which is expected to improve unit sales by 40 % and achieve fixed cost savings of $3,000 . Given that the company does not pay commissions to its sales people , the variable expenses per unit are expected to remain the same What would be the impact on profit ? a. Decrease by $6,000 b. No change c. Decrease by $5.000 d. Increase by $2.000 e. Increase by $1,000
Company XYZ produces and sells scientific calculators. The company is currently producing and selling 10,000 units. At this level, the fixed expenses were $10,500. In order to expand sales, the company plans to reduce the selling price by $2, which is expected to improve unit sales by 40% and achieve fixed cost savings of $10,000. Given that the company does not pay commissions to its sales people, the variable expenses per unit are expected to remain the same. What would be the impact on profit? O a. Decrease by $5,000 Ob. Increase by $2,000 Decrease by $6,000 O d. Increase by $1,000 O e. No change
Company XYZ produces and sells scientific calculators. The company is currently producing and selling 10,000 units. At this level, the fixed expenses were $10,500. In order to expand sales, the company plans to reduce the selling price by $2, which is expected to improve unit sales by 40% and achieve fixed cost savings of $3,000. Given that the company does not pay commissions to its sales people, the variable expenses per unit are expected to remain the same. What would be the impact on profit? O a. Increase by $1,000 Decrease by $6,000 Oc. No change O d. Decrease by $5,000 e. Increase by $2,000
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