Barnes Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs $224,000; 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
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2. Reduce variable costs to 60% of sales.
Net income
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3. Reduce fixed costs by $20,000.
Net income $Entry field with incorrect answer