Current Attempt in Progress Ivanhoe Company reports the following operating results for the month of August: sales $375,000 (units 5,000), variable costs $257.000, and fixed costs $95,000. Management is considering the following independent courses of action to increase net income. Increase selling price by 12% with no change in total variable costs or units sold. Reduce variable costs to 61% of sales. 1. 2 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? Save for Later Attempts: 0 of 7 used Submit Answer O a C HIBA In 2019, Blossom Company had a break-even point of $225,000 based on a selling price of $5 per unit and fixed costs of $90.000. In 2020, the selling price and the variable costs per unit did not change, but the break-even point increased to $425,000. (a) Your answer is correct. Compute the variable costs per unit and the contribution margin ratio for 2019. (Round Variable cost per unit to 2 decimal places, eg.2.25 and Contribution margin ratio to decimal places, eg. 20.) Variable costs per unit Contribution margin ratio 40 96 e Textbook and Media Attempts: 2 of 7 used a C 3SHIBA (b) Compute the increase in fixed costs for 2020, Increase in fixed cost $ Save for later Attempts: 0 of 7 used Submit Q g a - C TOSHIBA Cortana key VO os