Xercise 19-3 Correct answer. Your answer is correct. Barnes Company reports the following operating results for the month of August: sales $320,000 (units 5,000); variable costs $216,000; and fixed costs $70,500. 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 $Entry field with correct answer 65500 2. Reduce variable costs to 56% of sales. Net income $Entry field with correct answer 70300 3. Reduce fixed costs by $22,000. Net income $Entry field with correct answer 55500

1.$352,000

2.$33,500

3. $227,500

Explanation:

1.

$320,000 x 10% = 32,000

$320,000 + $32,000= $352,000

2.

Reduce variable costs to 56% of sales.

$320,000 x 56%= $179,200

Sales $320,000 - VC $ 216,000= $104,000

CM $104,000 - FC $70,500 = $33,500

By reducing the variable costs to 56% of sales we would get a net income of $ 33,500

3.

Reduce fixed costs by $22,000.

Sales $320,000 - VC $ 22,000=$298,000

CM $298,000 - FC $70,500 = $227,500

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.