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not sure if my first answer is right explanations appreciated UR Sunland Farms reports the following results for the month of November: Sales ( 11,000
not sure if my first answer is right explanations appreciated
UR Sunland Farms reports the following results for the month of November: Sales ( 11,000 units) $ 693,000 Variable costs 484,000 Contribution margin 209,000 Fixed costs 121,000 Net income $ 88,000 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 $ 698000 2. Reduce variable cost $ 3. Reduce fixed cost VA If maximizing net income is the objective, which is the best course of action? Best course of action is increasing selling price Step by Step Solution
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