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please find the net sales and selling expense for jasons ideas Prenare a rondenced inrome ctatement for ? 23 acc ming Sarah's rhanoec are imnlemented

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please find the net sales and selling expense for jasons ideas

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image text in transcribed Prenare a rondenced inrome ctatement for ? 23 acc ming Sarah's rhanoec are imnlemented Prepare a condensed income statement for 2023 assuming Jason's ideas are adopted. Sarah believes the problem lies in the relatively low gross profit rate of 20%. Jason believes the problem is that operating expenses are too high. Sarah thinks the gross profit rate can be improved by making two changes. (1) Increase average selling prices by 15%; this increase is expected to lower sales volume so that total sales dollars will increase only 4\%. (2) Buy merchandise in larger quantities and take all purchase discounts. These changes to purchasing practices are expected to increase the gross profit rate from its current rate of 20% to a new rate of 25%. Sarah does not anticipate that these changes will have any effect on operating expenses. Jason thinks expenses can be cut by making these two changes. (1) Cut 2023 sales salaries of $77,250 in half and give sales personnel a commission of 2% of net sales. (2) Reduce store deliveries to one day per week rather than twice a week; this change will reduce 2023 delivery expenses of $51,500 by 40%. Jason feels that these changes will not have any effect on net sales. Sarah and Jason come to you for help in deciding the best way to improve net income

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