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 $_________ $_________