Your answer is incorrect. Try again. Ger Company reports the following operating

Question

Your answer is incorrect. Try again.

Ger Company reports the following operating results for the month of August: Sales $300,000 (units 5,000); variable costs $210,000; and fixed costs $70,000. Management is considering three independent courses of action to increase net income.
Compute the net income that would result from each of the independent actions below:

1. Increase selling price by 10% with no change in total variable costs.
$


2. Reduce variable costs to 58% of sales.
$


3. Reduce fixed costs by $20,000.
$

Explanation / Answer

2. Reduce variable costs to 58% of sales. $

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