Accounting -2-24Lady MacBeth Company sells bottles of dry cleaning solvent

| January 30, 2017

Question
2-24Lady MacBeth Company sells bottles of dry cleaning solvent(spot remover) for $10 each. The variable cost for each bottle is $4. Lady MacBeth’s totak fixed cost for the year is $3600.

2-34.Refer to 2-24. Suppose your boss at Lady MacBeth is considering some alternative plan and would like your input on tthe following three independet alternatives.:

150 words minimum.

(a) Increase the selling price oer bottle by $3

(b) Decrease the variable cost per bottle by $2 by purchasing an equally effective, but less “environmentally friendly “, solvent frin your supplier.

(c) Decrease the total fixed cost by $1260.

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