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Business, 26.03.2021 01:00 MayFlowers
Marigold Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $222,000; and fixed costs $71,900. 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 selling price by 10% with no change in total variable costs or sales volume. Net income $enter a net income if the selling price is increased by 10% 2. Reduce variable costs to 60% of sales. Net income $enter a net income if the variable costs are reduced to 60% of sales 3. Reduce fixed costs by $19,000. Net income $enter a net income if the fixed costs are reduced by $19,000 Which course of action will produce the highest net income
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Marigold Company reports the following operating results for the month of August: sales $300,000 (un...
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