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Sunland Company reports the following operating results for the month of August: sales $320,000 (units 5,000 ); variable costs $216,000; and fixed costs $70,500. Management
Sunland Company reports the following operating results for the month of August: sales $320,000 (units 5,000 ); variable costs $216,000; and fixed costs $70,500. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase unit selling price by 10% with no change in total variable costs or sales volume. Net income $ 2. Reduce variable costs to 56% of sales. Net income \$ 3. Reduce fixed costs by $22,000. Net income $ Which course of action will produce the highest net income
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