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QUESTION 1 Kravits Company reports the following information for the month of November: Sales (5,000 units) Variable Costs Contribution Margin Fixed Costs Net Income (Loss)

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QUESTION 1 Kravits Company reports the following information for the month of November: Sales (5,000 units) Variable Costs Contribution Margin Fixed Costs Net Income (Loss) $ 650,000 430,000 220,000 90.000 S 130.000 Management is considering the following as potential strategies to increase profits: A Decrease fixed costs, $7,500 B Decrease variable cost to 60% of sales C. Increase sales price by 5.0% REQUIRED: Address the following questions. Show all computations. Label (identify) ALL S-amounts with a 5. Label non-S-amounts according to the relevant term (c.8., 15 boxes, NOT just 15) 1. What is the net income if strategy A is implemented? 2. What is the net income if strategy Bis implemented? 3. Based on the two strategies you evaluated, which one do you recommend and why

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