Crane Farms reports the following results for the month of November Sales (10.200 unit) $652,800 Variable costs 459,000 Contribution margin Fixed costs Net income 193.800 Course 112.200 $81,600 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 1 Reduce foxed costs by $10.000 Calculate net income for the above courses of action 1 Increase selling price 2 Reduce variable cost 1. Reduce foed cont Net Income If maximizing net income is the objective, which is the best course of action Beit course of action is
Crane Farms reports the following results for the month of November Sales (10.200 unit) $652,800 Variable costs 459,000 Contribution margin Fixed costs Net income 193.800 Course 112.200 $81,600 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 1 Reduce foxed costs by $10.000 Calculate net income for the above courses of action 1 Increase selling price 2 Reduce variable cost 1. Reduce foed cont Net Income If maximizing net income is the objective, which is the best course of action Beit course of action is
Chapter1: Financial Statements And Business Decisions
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Crane Farms reports the following results for the month of November
Sales (10.200 units)
Variable costs
Contribution margin
Fixed costs
Net Income
$652,800
459,000
193,800
Course
112.200
$81.600
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
1. Increase selling price S
2 Reduce variable cost
4. Reduce foxed cost
S
S
Net Income
If maximizing net income is the objective, which is the best course of action?
Best course of action is reducing variable co
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