Englehart Inc

question 85

Essay

Englehart Inc. reports the following operating results for the month of August: Sales $450000 (units 5000); variable costs $280000; and fixed costs $115000. Management is considering the following independent courses of action to increase net income.
1. Increase selling price by 10% with no change in total variable costs.
2. Reduce variable costs to 65% of sales.
3. Reduce fixed costs by $15000.
Instructions
Compute the net income to be earned under each alternative. Which course of action will produce the highest net income?

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Definitions:

N-terminal

Refers to the start of a protein or polypeptide terminated by an amino acid with a free amine group.

Amino Acid

A building block of proteins, characterized by an amino group (-NH2), a carboxyl group (-COOH), and a specific side chain.

Tripeptide

A molecule composed of three amino acids linked by peptide bonds.

SGD

Stochastic Gradient Descent, an iterative method for optimizing an objective function with suitable smoothness properties.