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Birchfield Company reports the following operating results for the month of February: sales $846,000 (units 14,100); variable costs $482,220; and fixed costs $213,600. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 2.6% with no change in total variable costs or units sold. 2. Reduce variable costs to 53.50% of sales. Compute the net income to be earned under each alternative. (Round per unit calculations to 2 decimal places, eg. 15.25 and final answers to 0 decimal places, e.g. 125). Alternative #1 Alternative #2 Net Income $_________ $_________
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