Business, 27.07.2021 16:30 blaizelange2573

Englehart, Inc. reports the following operating results for the month of August: Sales $450,000 (units 5,000); variable costs $280,000; and fixed costs $115,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs.
2. Reduce variable costs to 65% of sales.
3. Reduce fixed costs by $15,000.
Compute the net income to be earned under each alternative.
Net Income
Increase selling price
Reduce variable costs
Reduce fixed cost
Which course of action will produce the highest net income?
a. Increase selling price by 10%
b. reducing variable cost 65%
c. reducing fixed cost 15,000

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Englehart, Inc. reports the following operating results for the month of August: Sales $450,000 (uni...

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