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Company reports the following operating results for the month of August:
Sales $358,400 (units 5,120);
variable costs $218,624; and
fixed costs $66,230.
Management is considering the following independent courses of action to increase profit.
1. Increase selling price by 10% with no change in total variable costs.2. Reduce variable costs to 56% of sales.3. Reduce fixed costs by $11,360.
Problem 1: Compute the profit to be earned under each alternative. (Round all answers to 0 decimal places.)
Problem 2: Which course of action will produce the highest profit? Yes or no
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