-Page Break Ex. 174 Henderson Farms reports the following results for the month of November: Sales (10,000 units) $600,000 Variable costs 420,000 Contribution margin 180,000 Fixed costs 110,000 Net income $ 70.000 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. Instructions If maximizing net income is the objective, which is the best course of action? 37. Gribble Company's high and low level of activity last year was 60,000 units of product produced in May and 20,000 units produced in November. Machine maintenance costs were $156,000 in May and $60,000 in November. Using the high-low method, determine an estimate of total maintenance cost for a month in which production is expected to be 45,000 units. a. $135,000 b. $144,000 C. $117,000 d. $120,000 in D 10: Rinnm AP Di Malim Min: AACSR Analyti AICPA RR: Industry/Sector Parsnartin AICPA FN: Ma mant AICPA PC Inglish (United States)