Henderson Farms reports the following results for the month of November: Sales (10,000 units) $600,000 Variable...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Henderson Farms reports the following results for the month of November: Sales (10,000 units) $600,000 Variable costs 420,000 Contribution margin 180,000 Fixed costs 110,000 Net income $ 70,000 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 2/3% of sales. 3. Reduce fixed costs by $10,000. Calculate net income for the above courses of action. Course Net Income 1. Increase selling price 2. Reduce variable cost %$4 3. Reduce fixed cost If maximizing net income is the objective, which is the best course of action? Best course of action is Henderson Farms reports the following results for the month of November: Sales (10,000 units) $600,000 Variable costs 420,000 Contribution margin 180,000 Fixed costs 110,000 Net income $ 70,000 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 2/3% of sales. 3. Reduce fixed costs by $10,000. Calculate net income for the above courses of action. Course Net Income 1. Increase selling price 2. Reduce variable cost %$4 3. Reduce fixed cost If maximizing net income is the objective, which is the best course of action? Best course of action is
Expert Answer:
Answer rating: 100% (QA)
Answer Solution 10000 units Amount Per unit Sales 600000 60 L... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
Students also viewed these accounting questions
-
The Unruh Company reports the following results for the month of November: Sales (10,000 units) ..... $600,000 Variable costs ....... 420,000 Contribution margin .... 180,000 Fixed costs ............
-
David has a savings account with a 7,000 balance today. The account earns an annual percentage rate of interest of 4.00%, compounded monthly. David plans to make no other deposits or withdrawals. How...
-
The Parent consolidated group reports the following results for the tax year. Entity Income or Loss Parent . $10,000 Sub1 (1,500) Sub2 4,000 Sub3 2,000 a. Assuming a 35% marginal tax rate, what is...
-
For the given values, determine the quadrant(s) in which the terminal side of the angle lies. cos = 0.5000
-
Below is a table of average gold prices for each of six years, along with annual sales of prospecting equipment in Fairbanks, Alaska. a. Compute the covariance. b. Compute the correlation coefficient...
-
The Audiofile Company produces boomboxes. However, management has decided to subcontract out the production of the speakers needed for the boomboxes. Three vendors are available to supply the...
-
Describe primary and foreign keys. How do they differ?
-
A company wants to develop a level production plan for a family of products. The opening inventory is 550 units, and a decrease to 200 units is expected by the end of the plan. The demand for each of...
-
What is the error to this Matlab code for part 3b? Please do parts 3b - 3e Image transcription text WC=1; [-,idx] = min (abs (wout - wc) ) ; A = mag (idx) ; - theta = phaseDeg (idx) ; DO YOUIA WN t...
-
? ?? ? ? Assume that Alpha and Omega compete in the same four-digit SIC code industry and offer comparable products and services. The following table contains their reported financial performance and...
-
Humulene is a terpene found in the extracts of carnations. Determine the products that would result from the oxidative cleavage of humulene with ozone. Draw the products that would form under...
-
Lynn Goldsmith is a photographer known for her photographs of famous musicians. In 1981, Goldsmith had a photography session with the singer Prince. Three years later, Vanity Fair obtained a license...
-
A contract is created to refurbish a luxury yacht: new color schemes, new furniture, new wall and floor coverings, new light fixtures, and window treatmentsthe whole works. Of course, it is not just...
-
On February 20, 2009, Cedar Valley Aviation, a wholly owned subsidiary of Aerial Services, Inc. (ASI), brought a Piper 522AS (Cheyenne II) in for maintenance to Des Moines Flying Service, Inc....
-
Respondents Varsity Brands, Inc., Varsity Spirit Corporation, and Varsity Spirit Fashions & Supplies, Inc., design, make, and sell cheerleading uniforms. Respondents have obtained or acquired more...
-
Should the requirements of the UCC be subject to the application of reliance theories? Go back and review the facts in Case 21-3 about the coal contract. Should silence followed by contract execution...
-
Write the necessary commands to program the Nablus router using the protocol OSPF for this ip 2 0 . 0 . 0 . 0 / 8
-
Juanita owns a home in Richardson, TX. She purchases a Homeowners Policy (HO-3) from Farm State Ins. Co. The policy provides $100,000 in liability coverage (coverage E) and $5,000 in Med Pay coverage...
-
Evaluate the following statement: The underlying rationale for the nonrecognition of a gain or loss resulting from a like-kind exchange is that the exchange constitutes a liquidation of the...
-
Kelly is an employee who incurs $2,000 of business meal expenses in connection with business entertainment and travel, none of which are reimbursed by her employer. $500 of the business meal costs...
-
At the close of business on May 31, 2015, Alaska Corporation exchanges $2 million of its voting common stock for all the noncash assets of Tennessee Corporation. Tennessee uses its cash to pay off...
-
Name some characteristics that allow you to observe light diffraction.
-
Planar waves from a monochromatic light source are normally incident on a circular obstacle, which casts a shadow on a screen positioned behind the obstacle. What do the wave properties of light...
-
Which wavelength of electromagnetic radiation do you expect to be diffracted by a window screen? What is the frequency of this radiation?
Study smarter with the SolutionInn App