Question
Cullumber Farms reports the following results for the month of November: Sales (11,100 units) $710,400 Variable costs 499,500 Contribution margin 210,900 Fixed costs 122,100 Net
Cullumber Farms reports the following results for the month of November: Sales (11,100 units) $710,400 Variable costs 499,500 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 $enter a dollar amount 2. Reduce variable cost $enter a dollar amount 3. Reduce fixed cost $enter a dollar amount If maximizing net income is the objective, which is the best course of action? Best course of action is select an option
Current Attempt in Progress Cullumber Farms reports the following results for the month of November: Sales (11,100 units) $710,400 Variable costs Contribution margin 499,500 210,900 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 $ 2. Reduce variable cost $ 3. Reduce fixed cost $ If maximizing net income is the objective, which is the best course of action? Best course of action isStep by Step Solution
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