Crane Company reports the following operating results for the month of August: sales $392,000 (units 4,900), variable costs $254,000, and fixed costs $91,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 15% with no change in total variable costs or units sold. 2. Reduce variable costs to 68% of sales. Compute the net income to be earned under each alternative.
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Crane Company reports the following operating results for the month of August: sales $392,000 (units...
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