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can you help me with Q2 and Q3 please. Thank you Sandhill Company reports the following operating results for the month of August: sales $325,000
can you help me with Q2 and Q3 please. Thank you
Sandhill Company reports the following operating results for the month of August: sales $325,000 (units 5,000); variable costs $215,000; and fixed costs $71,500. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase unit selling price by 10% with no change in total variable costs or sales volume. Net income $ 2. Reduce variable costs to 60% of sales. Net income \$ 3. Reduce fixed costs by $21,000. Net income Which course of action will produce the highest net income? Sandhill Company reports the following operating results for the month of August: sales $325,000 (units 5,000); variable costs $215,000; and fixed costs $71,500. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase unit selling price by 10% with no change in total variable costs or sales volume. Net income $ 2. Reduce variable costs to 60% of sales. Net income \$ 3. Reduce fixed costs by $21,000. Net income Which course of action will produce the highest net incomeStep by Step Solution
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