(SHOW ALL COMPUTATIONS or no credit given)

6. (9 points) show computations Vera Bradley Inc. had the following information for the month of June: Sales Revenue (20,000 units) Variable costs Fixed costs $1,200,000 800,000 300,000 Net income $ 100,000 Management of Vera Bradley has been assessing possible course of action and have developed the following independent scenarios to pursue I. Increase variable costs t 70% of sales. 2. Reduce fixed costs by $40,000 3. Increase selling price by 6% with no change in total variable costs. Instructions Vera Bradley would like to select the scenario that would result in highest net income. Which scenario would you recommend and why? You show computations for each one and then state your conclusion. the must