Quinn Company Reports the Following Results for the Month of November

question 184

Essay

Quinn Company 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 6% with no change in total variable costs.
2. Reduce variable costs to 65% of sales.
3. Reduce fixed costs by $20,000.
Instructions
If maximizing net income is the objective, which is the best course of action?

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Definitions:

Physically Minimized

indicates having one's physical presence or the size of physical attributes reduced or made to appear smaller.

Social-Cultural Influences

The effects of society and culture on an individual's beliefs, behaviors, and understanding of the world.

Severe Pain

An intense level of discomfort that significantly affects an individual's well-being and ability to function.

Keyboard Operators

Individuals who primarily use keyboards for data entry or computer operation tasks.