Blossom Company reports the following operating results for the month of August: sales $ 300,000 (units 5,000); variable costs $ 210,000; 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 unit selling price by 10% with no change in total variable costs or sales volume.

Net income

$ enter the net income in dollars

2. Reduce variable costs to 55% of sales.

Net income

$ enter the net income in dollars

3. Reduce fixed costs by $ 18,000.

Net income

$ enter the net income in dollars

Which course of action will produce the highest net income? select an alternative

Blossom Company reports the following operating results for the month of August: sales $ 300,000 (units 5,000); variable costs $ 210,000; 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 unit selling price by 10% with no change in total variable costs or sales volume. Net income $ 2. Reduce variable costs to 55% of sales. Net income $ 3. Reduce fixed costs by $ 18,000. Net income $ Which course of action will produce the highest net income