Current Attempt in Progress Oriole Farms reports the following results for the month of November: Sales (10,500 units) Variable costs Contribution margin Fixed costs Net income Management is considering the following independent courses of action to increase net income. Course $651,000 451,500 199,500 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 2. Reduce variable cost 115,500 3. Reduce fixed cost $ 84,000 Best course of action is $ $ $ Net Income If maximizing net income is the objective, which is the best course of action?
Current Attempt in Progress Oriole Farms reports the following results for the month of November: Sales (10,500 units) Variable costs Contribution margin Fixed costs Net income Management is considering the following independent courses of action to increase net income. Course $651,000 451,500 199,500 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 2. Reduce variable cost 115,500 3. Reduce fixed cost $ 84,000 Best course of action is $ $ $ Net Income If maximizing net income is the objective, which is the best course of action?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me with calculation thanku
Transcribed Image Text:Current Attempt in Progress
Oriole Farms reports the following results for the month of November:
Sales (10,500 units)
Variable costs
Contribution margin
Fixed costs
Net income
$651,000
Course
451,500
Management is considering the following independent courses of action to increase net income.
199,500
1. Increase selling price by 5% with no change in total variable costs.
2. Reduce variable costs to 66%% of sales.
2. Reduce variable cost
115,500
3. Reduce fixed costs by $10,000.
3. Reduce fixed cost
$ 84,000
Calculate net income for the above courses of action.
Best course of action is
1. Increase selling price $
$
$
Net Income
If maximizing net income is the objective, which is the best course of action?
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