Norton Company reports the given operating results for the month of August:
Sales $310,000 (units 5,000); variable costs $210,000; and fixed costs $75,000. Management is considering the given independent courses of action to raise net income.
Increase selling price by 10% with no change in total variable cost s or sales volume. Reduce variable costs to 58% of sales Reduce fixed costs by $20,000.
find out the total income to be earned under each alternative. Which course of action will generate the maximum net income?