Vaughn Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs $219,000; and fixed costs $71,600. 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.

$55,900

Explanation:

Based on the information given in the question, the following can be derived:

Units = 5000

Sales = $315000

Variable costs = $219,000

Fixed costs = $71,600

Selling price per unit

= 315,000/5000.

= 63

Variable expense per unit

= 219,000/5,000

= 43.8

Contribution margin per unit

= 63 - 43.8

= 19.2

We then calculate the 10% increase in selling price. This will be:

= $63 × (100% + 10%)

= $63 × 110%

= $63 × 1.10

= $69.3

Sales = 5000 × 69.3 = 346500

Less: Variable expense = 5000 × 43.80 = 219000

Contribution margin = 127500

Less: Fixed expense = 71,600

Net operating income = 55,900

if i need to borrow money for anything, it would be for something like a house or an apartment but, that depend on the situation.

is this good enough?

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough