Blossom Company reports the following operating results for the month of August: sales $384,000 (units 4,800), variable costs $251,000, and fixed costs $96,000. Management is considering the following independent courses of action to increase net income.

1.		Increase selling price by 15% with no change in total variable costs or units sold.
2.		Reduce variable costs to 67% of sales.

1.		Net Income		$enter a dollar amount
2.		Net Income		$

Which course of action will produce the higher net income? select an option alternative 1 or alternative 2

Answer rating: 100% (QA)

1 Increase selling price by 15 Selling price Total s... View the full answer