Norton Company reports the following operating results for the month of August: sales $ 310,000 : variable costs $210,000; and fixed costs $75,000. Managment is considering the following independent course of action to increase net income.
1. Increase selling price by 10% with no change in total variable costs or sales volume.
2. Reduce variable costs to 58% of sales.
3.Reduce fixed costs by $20,000.