not sure if my first answer is right explanations appreciated ...
60.1K
Verified Solution
Link Copied!
Question
Accounting
not sure if my first answer is right explanations appreciated
UR Sunland Farms reports the following results for the month of November: Sales ( 11,000 units) $ 693,000 Variable costs 484,000 Contribution margin 209,000 Fixed costs 121,000 Net income $ 88,000 Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 5% with no change in total variable costs. 2. Reduce variable costs to 66%% of sales. 3. Reduce fixed costs by $ 10,000. Calculate net income for the above courses of action Course Net Income 1. Increase selling price $ 698000 2. Reduce variable cost $ 3. Reduce fixed cost VA If maximizing net income is the objective, which is the best course of action? Best course of action is increasing selling price
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
