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Ivanhoe Company reports the following operating results for the month of August: sales $ 2 5 8 , 0 0 0 ( units 5 ,
Ivanhoe Company reports the following operating results for the month of August: sales $units ; variable costs $; and fixed costs $ Management is considering the following independent courses of action to increase operating income:
Increase the selling price by with no change in total variable costs.
Reduce variable costs to of sales.
Reduce fixed costs by $
Calculate the operating income that would be earned under each alternative.
Operating income
Alternative
$
Alternative
$
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