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?

Question

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?

Quizplus · Accepted Answer

The Answer of 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?

Quinn Company Reports the Following Results for the Month of November