In planning a DECA fundraiser, which cost category should be prioritized to maximize net income?

• A. Control variable costs and manage fixed costs, focusing on expenses that can be adjusted to improve net income
• B. Increase fixed costs to improve quality
• C. Hire more staff to expand capacity
• D. Invest heavily in premium gifts

Answer: (A)

The main idea here is focusing on costs that change with your sales. Net income equals revenue minus costs, so the best way to boost it in a fundraiser is to tighten the costs that vary with how much you sell or how long the event runs. Variable costs—like materials, packaging, payment processing, and per-item labor—can be cut back or renegotiated if sales are slow, and they rise or fall directly with revenue. Keeping a tight handle on these helps you squeeze more profit from every dollar of revenue.

Fixed costs, such as venue rental, insurance, or certain upfront expenses, don’t vary with the amount you sell. They’re harder to adjust in the short term, so increasing them doesn’t reliably raise net income unless the extra revenue from the fundraiser covers them and more. Tools like hiring more staff or spending heavily on premium gifts also raise costs without guaranteed revenue gains, which can erode net income if sales don’t meet expectations.

So, prioritizing control over variable costs—and ensuring any fixed costs are truly necessary and efficient—gives you the most flexible and effective path to maximizing net income.