Sandhill company reports the following operating results for the month of august: sales $400,000 (units 5,000), variable costs $247,000, and fixed costs $98,000. management is considering the following independent courses of action to increase net income. 1. increase selling price by 10% with no change in total variable costs or units sold. 2. reduce variable costs to 59% of sales. compute the net income to be earned under each alternative.(round intermediate calculations to 2 decimal places, e. g. 2.25 and final answers to o decimal places, e. g. 12,125.) 1. net income 2. net income which course of action will produce the highest net income.

For each of the following cases determine the ending balance in the inventory account. (hint: first, determine the total cost of inventory available for sale. next, subtract the cost of the inventory sold to arrive at the ending balance.)a. jill’s dress shop had a beginning balance in its inventory account of $40,000. during the accounting period jill’s purchased $75,000 of inventory, returned $5,000 of inventory, and obtained $750 of purchases discounts. jill’s incurred $1,000 of transportation-in cost and $600 of transportation-out cost. salaries of sales personnel amounted to $31,000. administrative expenses amounted to $35,600. cost of goods sold amounted to $82,300.b. ken’s bait shop had a beginning balance in its inventory account of $8,000. during the accounting period ken’s purchased $36,900 of inventory, obtained $1,200 of purchases allowances, and received $360 of purchases discounts. sales discounts amounted to $640. ken’s incurred $900 of transportation-in cost and $260 of transportation-out cost. selling and administrative cost amounted to $12,300. cost of goods sold amounted to $33,900.a& b. cost of goods avaliable for sale? ending inventory?