Dalton Company reports the following operating results for the month of august. sales 300000 (units 5000); variable costs 210000; and fixed costs 70000. management is considering the following independenf courses of action to increase net income.

Dabon Company reports the fol wing operai of action to increase net income g results fore more ef A ue ses S300000 lunes s s va uble con s21 0.000 and fined cotroooo. Mnag.. ent com dering the %low ng ndependent oo rses , Increase seling price by 10% with no change in total varlable costs or sales volume 2. Reduce variable costs to 58% of sales 3 Reduce foxed costs by 120000 nstructions Compute the break even point (sales doliars and unitst under each altennabve Compute the net inceme to be earned under each alternative. Which course of ation wil produce the highest net ncome Reply 1. Increase selling price by 10% with no change in total variable costs or sales volume. 2. Reduce variable costs to 58% of sales. 3. Reduce fixed costs by $20,000. Instructions Compute the break even point (sales dollars and units) under each alternative Compute the net income to be earned under each alternative. Which course of action will produce the highest net income