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Question A ISK3: 4 Marks Star Farms reports the following results for the month of September: Sales (10.000 units) Variable costs Contribution margin $600,000 420,000

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Question A ISK3: 4 Marks Star Farms reports the following results for the month of September: Sales (10.000 units) Variable costs Contribution margin $600,000 420,000 180,000 Fixed costs 110,000 70,000 Net income Management is considering the following independent courses of action to increase net income I. Reduce variable costs to 66%% of sales 2. Reduce fixed costs by $10,000 3. Increase selling price by 5% with no change in total variable costs Required: If maximizing net income is the objective, which is the best course of action

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