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Ger Company reports the following operating results for the month of August: Sales $300,000 (units 5,000); variable costs $210,100; and fixed costs $71,600. Management is
Ger Company reports the following operating results for the month of August: Sales $300,000 (units 5,000); variable costs $210,100; and fixed costs $71,600. Management is considering three independent courses of action to increase net income. Compute the net income that would result from each of the independent actions below: (Round your answers to 0 decimal places, e.g. 52,500. When computing new selling price round your computation to 2 decimal places, e.g. 66.25 to arrive at the answer.) 1. Increase selling price by 10% with no change in total variable costs. $ 2. Reduce variable costs to 51% of sales. $ 3. Reduce fixed costs by $22,800. $
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