a. Increase your fixed costs by $50,000 which will decrease variable costs by $8 per unit.
b. Sell off $100,000 of your fixed costs which will increase your variable costs by $12 per unit.
c. Decrease your sales price by $5 in order to increase sales by 5,000 units.
Which of the above alternatives would your choose to increase profits?
Recently Asked Questions
- What is the economic value added, EVA, based on the following information? EBIT = $700; Total assets = $3,000; Corporate tax rate: 40% WACCcomp:15%, Select
- Based on the following information, what is the ROE? Total assets: 100 Debt: 40 Sales: 80 Net income: 10 Select one: a. 19.3% b. 17.7% c. 16.7% d. 18.5%
- Please refer to the attachment to answer this question. This question was created from UofC_GL19_Lab.