Barnes Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs $218,000; and fixed costs $70,000. 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 $23,000. Net income Which course of action will produce the highest net income Click if you would like to Show Work for this questio Alternative 2 Alternative 1 Alternative 3 The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60 a night. Operating costs are as follows. Salaries Utilities Depreciation Maintenance Maid service Other costs $8,800 per month 2,700 per month 1,300 per month 700 per month 8 per room 34 per room x Your answer is incorrect. Try again. Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars. 1. Break-even point in rooms 13,500 2. Break-even point J 30,681 per month x Your answer is incorrect. Try again. If the inn plans on renting an average of 50 rooms per day (assuming a 30-day month), what is (1) the monthly margin of safety in dollars and (2) the margin of safety ratio? (Round ratio to 0 decimal places, e.g. 10%.) 1. Margin of safety |81819 2. Margin of safety ratio