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Erin Company reports the following operating results for the month of August: Sales $364,800 (units 4,560); variable costs $237,120; and fixed costs $83,960. Management
Erin Company reports the following operating results for the month of August: Sales $364,800 (units 4,560); variable costs $237,120; and fixed costs $83,960. Management is considering the following independent courses of action to increase profit. 1. Increase selling price by 10% with no change in total variable costs. 2. Reduce variable costs to 56% of sales. 3. Reduce fixed costs by $11,750. Compute the profit to be earned under each alternative. (Round all answers to O decimal places.) 1. Profit $ 2. Profit $ 3. Profit $
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