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Wildhorse Company reports the following operating results for the month of August: sales $441,000 (units 4,900), variable costs $261,000, and fixed costs $93,000. Management is
Wildhorse Company reports the following operating results for the month of August: sales $441,000 (units 4,900), variable costs $261,000, and fixed costs $93,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 58% 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
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