please show alternatives a-c Income tax rate Determine which alternative...
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Accounting
please show alternatives a-c
Income tax rate Determine which alternative Thompson Engine should select to achieve its net income objecti Show your calculations. Evaluate each of the alternatives presented by the management committee, begin with alternative a. More Information a. Reduce the selling price by 15\%. The sales organization forecasts that at this significantly reduced price, 1,400 units can be sold during the remainder of the year. Total fixed costs and variable cost per unit will stay as budgeted. b. Lower variable cost per unit by $750 through the use of less-expensive direct materials. The selling price will also be reduced by $800, and sales of 1,130 units are expected for the remainder of the year. c. Reduce fixed costs by 5% and lower the selling price by 25%. Variable cost per unit will be unchanged. Sales of 1,500 units are expected for the remainder of the year. Alternative
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