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 $23,900.
net income$: