Compute the net income of each alternative

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Reference no: EM13755572

A company reports the following operation results for sales for 1 month: sales $310,000 (units 5000); variable cost $210,000; and fixed cost $75,000. If they take 3 different courses of action which will produce the highest income?

1. Increase selling 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.

Compute the net income of each alternative.

Reference no: EM13755572

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