Sales 310000 units 5000 variable costs 210000 and fixed, Ask an Expert

Accounting

Norton Company reports the given operating results for the month of August:

Sales $310,000 (units 5,000); variable costs $210,000; and fixed costs $75,000. Management is considering the given independent courses of action to raise net income.

Increase selling price by 10% with no change in total variable cost s or sales volume. Reduce variable costs to 58% of sales Reduce fixed costs by $20,000.

Instructions:

find out the total income to be earned under each alternative. Which course of action will generate the maximum net income?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M919235

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