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Henderson Farms Reports the Following Results for the Month of November

Question 14

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Henderson Farms reports the following results for the month of November: Henderson Farms reports the following results for the month of November: 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. Instructions If maximizing net income is the objective, which is the best course of action?
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 Henderson Farms reports the following results for the month of November: 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. Instructions If maximizing net income is the objective, which is the best course of action?
% of sales.
3. Reduce fixed costs by $10,000.
Instructions
If maximizing net income is the objective, which is the best course of action?

Correct Answer:

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1. Current selling price is: $600,000 ÷ ...

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