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Ger Company reports the following operating results for the month of August: Sales $300,000: variable costs $210,100; and fixed costs $71,600. Management is considering three independent courses of action to increase net income.

Compute the net income that would result from each of the independent actions below:

1. Increase selling price by 10% with no change in total variable costs.

2. Reduce variable costs to 51% of sales.

3. Reduce fixed costs by $22,800.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9952704

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