Reference no: EM132670093

Company reports the following operating results for the month of August:

Sales $358,400 (units 5,120);

variable costs $218,624; and

fixed costs $66,230.

Management is considering the following independent courses of action to increase profit.

1. Increase selling price by 10% with no change in total variable costs.
2. Reduce variable costs to 56% of sales.
3. Reduce fixed costs by $11,360.

Problem 1: Compute the profit to be earned under each alternative. (Round all answers to 0 decimal places.)

Problem 2: Which course of action will produce the highest profit? Yes or no