Moran Company reports the following operating results for the month of August: sales $335,000 (units...
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Moran Company reports the following operating results for the month of August: sales $335,000 (units 5,000): variable costs $234,500: and fixed costs $68,700. Management is considering the following independent courses of action to increase operating income: 1. 2. 3 Increase the selling price by 10% with no change in total variable costs Reduce variable costs to 65% of sales. Reduce fred costs by $22.400. Calculate the operating income that would be earned under each alternative. Operating Income 5 Alternative 1 Alternative 2 S Alternative 3 5 Which course of action will produce the highest operating Income? will produce the highest operating income
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