E6-3 Norton Company reports the following operating results for the month of August: sales $310,000 (units 5,000); variable cost $210,000 and fixed cost $75,000. Management is considering the following independent courses of action to increase net income.
1.Increase selling price by 10% with no change in total variable cost or sales volume.
2.Reduce variable costs to 58% of sales.
3.Reduce fixed costs by $20,000
Click here for the solution: Norton Company reports the following operating results for the month of August
