3- Reduce fixed costs $_____

Question 5 of 6 Crane Farms reports the following results for the month of November: Sales ( 11,100 units) $666,000 Variable costs 466,200 Contribution margin 199.800 Fixed costs 122.100 Net income $ 77,700 Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 5% with no change in total variable costs. 2. Reduce variable costs to 66 7% of sales, 3. Reduce fixed costs by $ 10,000. Calculate net income for the above courses of action. Course Net Income 1. Increase selling price 2. Reduce variable cost $