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Current Attempt in Progress

Sandhill, Inc. reports the following operating results for August: Sales $$486,000($units $5,400)$; variable costs $$291,600$; and fixed costs

$$124,200.$ Management is considering the following independent courses of action to increase net income.

Increase the selling price by $10\%.$

Reduce variable costs to $55\%$ of sales.

Reduce fixed costs by $$19,000.$

Compute the net income to be earned under each alternative.

Net Income

Increase selling price

$

Reduce variable costs $

Reduce fixed costs $

Which course of action will produce the highest net income?

$,$ will produce higest net income.