Ger Company reports the following operating results for the month of August: Sales $300,000: variable costs $210,100; and fixed costs $71,600. 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 51% of sales.
3. Reduce fixed costs by $22,800.