Sheridan, Inc. reports the following operating results for August: Sales $$522,000($units $5,800)$; variable costs $$313,200$; and fixed costs $$133,400.$ Management is considering the following independent courses of action to increase net income

IInncrease the selling price by $10\%.$

Reduce variable costs to $55\%$ of sales.

Reduce fixed costs by $$23,000.$

Compute the net income to be earned under each alternative.

Net Income

Increase selling price $

Reduce variable costs $

Reduce fixed costs

Sheridan, Inc. reports the following operating results for August: Sales $$522,000($units $5,800)$; variable costs $$313,200$; and fixed costs $$133,400.$ Management is considering the following independent courses of action to increase net income.

Increase the selling price by $10\%.$

Reduce variable costs to $55\%$ of sales.

Reduce fixed costs by $$23,000.$

Compute the net income to be earned under each alternative.

Net Income

Increase selling price $ $$

Reduce variable costs $ $$

Reduce fixed costs

$ $$

Which course of action will produce the highest net income?

$,$ will produce higest net income.

Increasing selling price by $10\%$

Reducing variable cost to $55\%$

Reducing fixed cost by $$23,000$

Attempts: $0$ of $5$ used