Crane, Inc. reports the following operating results for August: Sales $448,000 (units 5,600); variable costs $268,800; and fixed costs $100,800. Management is considering the following independent courses of action to increase net income.

1.		Increase the selling price by 10%.
2.		Reduce variable costs to 55% of sales.
3.		Reduce fixed costs by $21,000.

Compute the net income to be earned under each alternative.

			Net Income
1.	Increase selling price		$enter a dollar amount
2.	Reduce variable costs		$enter a dollar amount
3.	Reduce fixed costs		$enter a dollar amount

Which course of action will produce the highest net income?

select an option Reducing variable cost to 55%Increasing selling price by 10%Reducing fixed cost by $21,000, will produce higest net income.