پیر A Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $222,000; and fixed costs $71.900. 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 60% of sales. Net income $ 3. Reduce fixed costs by $19.000. Net income $
پیر A Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $222,000; and fixed costs $71.900. 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 60% of sales. Net income $ 3. Reduce fixed costs by $19.000. Net income $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![3. Reduce fixed costs by $19,000.
Net income
$.
Which course of action will produce the highest net income?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fddad5d86-091d-4493-90be-ef5753132bfd%2F204178a3-65eb-4d89-94e5-7a2ff7a2e8e3%2Ft4ezfg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Reduce fixed costs by $19,000.
Net income
$.
Which course of action will produce the highest net income?
![Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs
$222,000; and fixed costs $71.900. 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 60% of sales.
Net income $
3. Reduce fixed costs by $19,000.
Net income $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fddad5d86-091d-4493-90be-ef5753132bfd%2F204178a3-65eb-4d89-94e5-7a2ff7a2e8e3%2Fj7grs4n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs
$222,000; and fixed costs $71.900. 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 60% of sales.
Net income $
3. Reduce fixed costs by $19,000.
Net income $
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