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Sunland Farms reports the following results for the month of November: Management is considering the following independent courses of action to increase net income. Increase
Sunland Farms reports the following results for the month of November:
Management is considering the following independent courses of action to increase net income.
Increase selling price by with no change in total variable costs.
Reduce variable costs to of sales.
Reduce fixed costs by $
Calculate net income for the above courses of action.
Course
Net Income
Increase selling price
$
Reduce variable cost
$
Reduce fixed cost
$
If maximizing net income is the objective, which is the best course of action?
Best course of action is
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