Carla Vista Company reports the following operating results for the month of August: sales $365,800 (units 5,000); variable costs $256,060; and fixed costs $82,600. Management is considering the following independent courses of action to increase operating income: 1. 2. 3. Increase the selling price by 10% with no change in total variable costs. Reduce variable costs to 65% of sales. Reduce fixed costs by $11,800. Calculate the operating income that would be earned under each alternative. Alternative 1 Alternative 2 $ $ Operating income

Carla Vista Company reports the following operating results for the month of August: sales $365,800 (units 5,000 ): variable costs $256,060; and fixed costs $82,600. Management is considering the following independent courses of action to increase operating income: Calculate the operating income that would be earned under each alternative