Sandhill Company reports the following operating results for the month of August: sales $382,500 (units 5,100),... Question: Sandhill Company reports the following operating results for the month of August: sales$382,500 (units 5,100), variable costs $245,000, and fixed costs$98,000. Management is considering the following independent courses of action to increase net income.

 1 Increase selling price by 16% with no change in total variable costs or units sold. 2 Reduce variable costs to 59% of sales.

Compute the net income to be earned under each alternative.

1. $enter a dollar amount$enter a dollar amount

Which course of action will produce the higher net income? select an option

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