Compute the net income to be earned under each alternative

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Reference no: EM13912015

Norton Company reports the following operating results for the month of August: sales $310,000 (units 5,000); variable costs $211,400; and fixed costs $69,100. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative.

1. Increase selling price by 10% with no change in total variable costs or sales volume.

Net income $:

2. Reduce variable costs to 53% of sales.

net income$:

3. Reduce fixed costs by $23,900.

net income$:

Reference no: EM13912015

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