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Answer ASAP for THUMBS UP! Erin Company reports the following operating results for the month of August: Sales $385,000 (units 5,500); variable costs $238,700; and
Answer ASAP for THUMBS UP!
Erin Company reports the following operating results for the month of August: Sales $385,000 (units 5,500); variable costs $238,700; and fixed costs $97,910. Management is considering the following independent courses of action to increase profit. 1. Increase selling price by 10% with no change in total variable costs. 2. Reduce variable costs to 57% of sales. 3. Reduce fixed costs by $11,780. Compute the profit to be earned under each alternative. (Round all answers to 0 decimal places.) Which course of action will produce the highest profitStep by Step Solution
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