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Bossy Company sells a single product. The company normally produces and sells 200,000 units each year at a selling price of $130 per unit. The
Bossy Company sells a single product. The company normally produces and sells 200,000 units each year at a selling price of $130 per unit. The company's unit cost at this level of activity is given below: Required: The president estimates that the company could increase net income if it reduced unit sales by 10%, increased selling price per unit to $131, decreased direct materials by $1 per unit, increased variable selling expense per unit by $.50 and decreased fixed selling expenses by $60,000. The company's income tax rate is 25%. Would the changes result in higher net income
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