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Exercise 174 Henderson Farms reports the following results for the month of November: Sales (10,000 units) Variable costs Contribution margin Fixed costs $600,000 420,000 180,000

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Exercise 174 Henderson Farms reports the following results for the month of November: Sales (10,000 units) Variable costs Contribution margin Fixed costs $600,000 420,000 180,000 110,000 $ 70,000 Net income 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 2/-% 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 I maximizing net income is the objective, which is the best course of action? Best course of action is Click if you would like to Show Work for this question: Open Show Work

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