Cullumber Company reports the following operating results for the month of August: sales $375,000 (units...
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Accounting
Cullumber Company reports the following operating results for the month of August: sales $375,000 (units 5,000), variable costs $246,000, and fixed costs $97,000. Management is considering the following independent courses of action to increase net income.
1. Increase selling price by 12% with no charge in total variable costs or units sold.
2. Reduce variable costs to 69% of sales.
Compute the net income to be earned under each alternative.
1. Net Income 2. Net Income
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