Company XYZ is currently making sales of $200,000. At this level, the variable expenses were $160,000. Assume that company XYZ expects sales to increase to $250,000 in the coming period with no change is expected to fixed ?expenses. How much is the expected change in profit Increase by $50,000 .a O Increase by $160,000 b O Increase by $10,000 .c O Cannot be determined d O Increase by 40,000 .e O

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Company XYZ is currently making sales of $200,000. At this level, the variable expenses were $160,000. Assume that
company XYZ expects sales to increase to $250,000 in the coming period with no change is expected to fixed
?expenses. How much is the expected change in profit
Increase by $50,000 .a O
Increase by $160,000 .b O
Increase by $10,000 .c O
Cannot be determined d O
Increase by 40,000 .e O
Transcribed Image Text:Company XYZ is currently making sales of $200,000. At this level, the variable expenses were $160,000. Assume that company XYZ expects sales to increase to $250,000 in the coming period with no change is expected to fixed ?expenses. How much is the expected change in profit Increase by $50,000 .a O Increase by $160,000 .b O Increase by $10,000 .c O Cannot be determined d O Increase by 40,000 .e O
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