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Windsor Corporation had Cullumber Company reports the following operating results for the month of August: sales $325,000 (units 5,000); variable costs $225,000; and fixed costs

Windsor Corporation had
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Cullumber Company reports the following operating results for the month of August: sales $325,000 (units 5,000); variable costs $225,000; and fixed costs $70,900, Management is considering the following independent courses of action to increase net income Compute the net income to be earned under each alternative. 1. Increase unit selling price by 10% with no change in total variable costs or sales wolume. Net income 2. Reduce variable costs to 59% of sales. Net income 3. Reduce fixed costs by $18,000. Net income s Which course of action will produce the highest net income

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