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E19-3 Compute net income under different alternatives Barnes Company reports the following operating results for the month of August: Sales Variable Costs Fixed Costs $325,000
E19-3 Compute net income under different alternatives Barnes Company reports the following operating results for the month of August: Sales Variable Costs Fixed Costs $325,000 $210,000 $75,000 Management is considering the following independent courses of action to increase net income. 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 $15,000. B 9 Units 5,000 Instructions Compute the net income to be earned under each alternative. Which course of action will produce the 5 highest net income? NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". 0 1 21. Increase selling price by 10% with no change in total veribla E19-3 Compute net income under different alternatives Barnes Company reports the following operating results for the month of August Management is considering the following independent courses of action to increase net income. 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 $15,000. Management is considering the following independent courses of action to increase net income. 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 $15,000. Instructions Compute the net income to be earned under each alternative. Which course of action will produce the highest net income? NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a
E19-3 Compute net income under different alternatives Barnes Company reports the following operating results for the month of August: Sales Variable Costs Fixed Costs $325,000 $210,000 $75,000 Management is considering the following independent courses of action to increase net income. 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 $15,000. B 9 Units 5,000 Instructions Compute the net income to be earned under each alternative. Which course of action will produce the 5 highest net income? NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". 0 1 21. Increase selling price by 10% with no change in total veribla
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