(Solved):Q: Barnes Company r…

 

Question

Question

Barnes Company reports the following operating results for the month of August: sales $310,000 (units 5,000); variable costs $223,000; and fixed costs $70,800. 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 selling price by 10% with no change in total variable costs or sales volume.

Net income  
$

 

2. Reduce variable

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