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Bramble Company reports the following operating results for the month of February: sales $936,000 (units 15,600); variable costs $453,960; and fixed costs $194,400. Management
Bramble Company reports the following operating results for the month of February: sales $936,000 (units 15,600); variable costs $453,960; and fixed costs $194,400. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 2.6% with no change in total variable costs or units sold. 2. Reduce variable costs to 44.80% of sales. C (a) Compute the net income to be earned under each alternative. (Round per unit calculations to 2 decimal places, eg. 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.
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