# e5-8 - Name Date Instructor Course rd Managerial Accounting...

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FileName: b9f6d07b478bac9b2b3d95353729271e7e2c2b39.xls, Tab: Exercise E5-8, Page 1 of 2, 12/28/2011, 19:01:31 Name: Date: Instructor: Course: Sales \$300,000 Variable costs \$210,000 Units 5,000 Fixed costs \$70,000 Management is considering the following independent courses of action to increase net income: 1. Increase the selling price by 10% with no change in total variable costs. 2. Reduce variable costs to 58% of sales 3. Reduce fixed costs by \$20,000 Instructions: Current selling price = Amount ÷ Number = Formula each Current selling price = Formula Increase selling price by Percentage , new selling price = Formula each Net gross = Amount Title X Amount Title = Amount Net income = Amount Title - Amount Title - Amount Total Net income = Formula Net income = Amount - ( Amount X Percentage ) - Amount Net income = Formula Net income = Amount - Amount - ( Amount + Amount ) Net income = Formula Managerial Accounting, 3 rd Edition, by Weygandt, Kieso, and Kimmel Solving Managerial Accounting Problems Using Microsoft Excel for Windows

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## This note was uploaded on 12/28/2011 for the course ACCT 221 taught by Professor Leonarda.bacon during the Winter '07 term at CSU Bakersfield.

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e5-8 - Name Date Instructor Course rd Managerial Accounting...

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