Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $214,000; and fixed costs $71,800. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase selling price by 10% with no change in total variable costs or sales volume. Net income $Enter the net income in dollars 2. Reduce variable costs to 55% of sales. Net income $Enter the net income in dollars 3. Reduce fixed costs by $23,000. Net income $Enter the net income in dollars Which course of action will produce the highest net income? Select an option

$14,200

$44,200

$63,200

$37,200

Explanation:

As per the data given in the question,

                    Presentation of profitability Statement

Particulars               Amount             Per unit

Sales                        $300,000               $60            ($300,000÷5,000)

Less: Variable cost $214,000

Contribution              $86,000

Less: Fixed cost $71,800

Net income             $14,200

Alternative 1 : increase selling price by 10%

Presentation of profitability Statement

Particulars                                                          Amount

Sales ($60+10% of $60) × 5,000                       $330,000

Less: Variable cost                                             $214,000

Contribution                                                      $116,000

Less: Fixed cost                                                $71,800

Net income                                                       $44,200

Alternative 2 : reduce variable cost to 55% sales

                          Presentation of profitability Statement

Particulars                                                           Amount

Sales                                                                     $300,000

Less: Variable cost(300,000×55%)                      $165,000

Contribution                                                         $135,000

Less: Fixed cost                                                    $71,800

Net income                                                            $63,200

Alternative 3 : reduce fixed cost by 23,000

                                   Presentation of profitability Statement

Particulars                                                                  Amount

Sales                                                                        $300,000

Less: Variable cost                                                 $214,000

Contribution                                                            $86,000

Less: Fixed cost($71,800-$23,000)                       $48,800

Net income                                                              $37,200

Therefore alternative 2 produced highest net income.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

administrative jobs normally have someone answering phone calls and scheduling appointments, filing patient or customer information, making sure the front of the office looks nice to those who enter the building. administrative jobs can also include making sure the manager has everything they need for meetings, making delivers and much more. administrative jobs are important to most businesses as are customer service focused as they are often one of the first impressions a consumer sees of a business.