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Englehart, Inc. reports the following operating results for the month of August: Sales $ 4 5 0 , 0 0 0 ( units 5 ,

Englehart, Inc. reports the following operating results for the month of August:
Sales $450,000(units 5,000)
variable costs $280,000
fixed costs $115,000
Management is considering the following independent courses of action to increase
net income.
Compute net income if the selling price is Increased by 10% with no shange in total
variable costs.
Compute net income is variable costs are reduced to 65% of sales.
Compute net income if fixed costs are reduced by $15,000.
Out of the three options, which course of action produces the highest net income?
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