Question 9 of 14 1/3 III TOUR Twers party UL. Cullumber Company reports the following operating results for the month of August: sales $375,000 (units 5,000), variable costs $246,000, and fixed costs $97,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 12% with no change in total variable costs or units sold. 2. Reduce variable costs to 69% of sales. Compute the net income to be earned under each alternative. 1. Net Income $ 2. Net Income $ Which course of action will produce the higher net income? Alternative 1 e Textbook and Media Attempts: unlimited Submit Answer Question 10 of 14 -13 Carla Vista Company estimates that variable costs will be 60.00% of sales, and fixed costs will total $560,000. The selling price of the product is $8. (a) Compute the break-even point in (1) units and (2) dollars. (1) Break-even sales units (2) Break-even sales $ e Textbook and Media (c) Assuming actual sales are $2,000,000, compute the margin of safety in (1) dollars and (2) as a ratio. Question 10 of 14 e Textbook and Media (c) Assuming actual sales are $2,000,000, compute the margin of safety in (1) dollars and (2) as a ratio. (1) Margin of safety $ 12) % Margin of safety ratio Question 11 of 14 -13 The controller of Blossom Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Total Machine Hours Month January February March April May June Total Maintenance Costs $2,590 2.890 3.490 4,390 3,090 5,390 330 380 530 660 530 730 (a 1) Determine the variable cost components using the high-low method. (Round answer to 2 decimal places eg. 2.25.) S Variable cost per machine hour Question 11 of 14 -13 (a1) Determine the variable cost components using the high-low method. (Round answer to 2 decimal places eg. 2.25.) Variable cost per machine hour $ e Textbook and Media (a2) Determine the fixed cost components using the high-low method, Total fixed costs $ e Textbook and Media