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Birchfield Company reports the following operating results for the month of February: sales $828,000 (units 13,800); variable costs $442,980; and fixed costs $182,300. Management is
Birchfield Company reports the following operating results for the month of February: sales $828,000 (units 13,800); variable costs $442,980; and fixed costs $182,300. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 2.7% with no change in total variable costs or units sold. Reduce variable costs to 50.30% of sales. 2. (a) Compute the net income to be earned under each alternative. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to o decimal places, e.g. 125.) Alternative #1 Alternative #2 Net Income $ $ Which course of action will produce the highest net income? will produce the highest net income. Alternative #1 Alternative #2 Save for later The following monthly data are available for Crane Company which produces only one product: Selling price per unit, $38; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 3000 units. How much is the margin of safety for the company for June? O $47500 O $30000 O $1250 O $5500 In 2019, Bramble Corp. sold 6200 units at $600 each. Variable expenses were $420 per unit, and fixed expenses were $285000 The same selling price, variable expenses, and fixed expenses are expected for 2020. What is Bramble's break-even point in sales dollars for 2020? $4670000. O $5314286. O $3720000. $950000
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