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Carla Vista Farms reports the following results for the month of November: Sales (11,100 units) $699,300 Variable costs 488,400 Contribution margin 210,900 Fixed costs
Carla Vista Farms reports the following results for the month of November: Sales (11,100 units) $699,300 Variable costs 488,400 Contribution margin 210,900 Fixed costs 122.100 Net income $ 88,800 Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 5% with no change in total variable costs. 2. Reduce variable costs to 66% of sales. 3. Reduce fixed costs by $10,000. Calculate net income for the above courses of action. Course Net Income 1. Increase selling price 734265 2. Reduce variable cost 488400 3. Reduce fixed cost 122100
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