Managerial Accounting

Crane, Inc. reports the following operating results for August: Sales $450.000 (units 5,000); variable costs $270,000; and fixed costs $115,000. 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 $15.000. Compute the net income to be earned under each alternative. Which course of action will produce the highest net income? will produce higest net income