Uluru Ltd reports the following results for the month of November:
Management is considering the following independent courses of action to increase profit.
1.Increase selling price by 10% with no change in total variable costs.
2.Reduce variable costs to 67% of sales.
3.Reduce fixed costs by $30,000.
Instructions: If maximising profit is the objective, which is the best course of action?

Question

Uluru Ltd reports the following results for the month of November:
  Management is considering the following independent courses of action to increase profit.
1.Increase selling price by 10% with no change in total variable costs.
2.Reduce variable costs to 67% of sales.
3.Reduce fixed costs by $30,000.
Instructions: If maximising profit is the objective, which is the best course of action?

Quizplus · Accepted Answer

The Answer of Uluru Ltd reports the following results for the month of November:
  Management is considering the following independent courses of action to increase profit.
1.Increase selling price by 10% with no change in total variable costs.
2.Reduce variable costs to 67% of sales.
3.Reduce fixed costs by $30,000.
Instructions: If maximising profit is the objective, which is the best course of action?

Uluru Ltd Reports the Following Results for the Month of November