Variable cost and fixed cost


ABC and XYZ Companies have the following sales, variable cost, and fixed cost.

ABC XYZ

Sales $50,000 $50,000

Variable Costs $10,000 $30,000

Fixed Costs $30,000 $10,000

If sales increase by $10,000 at each company, then:

a. ABC profits will increase by $2,000.

b. XYZ profits will increase by $4,000.

c. ABC and XYZ profits will increase by $4,000 and $6,000.

d. XYZ profits will increase by $8,000.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Variable cost and fixed cost
Reference No:- TGS065458

Expected delivery within 24 Hours