3. Moran Co. reports the following operating results for the month of Aug.: sales

$350000 (units 5000); VC $210000; and FC $90000. Management is considering the

following independent courses of action to increase net income.

1. Increase selling price by 10% with no change in total VC or units sold.

2. Reduce VC to 55% of sales

3. Reduce FC by $10000

Compute the net income to be earned under each alternative. Which

course of action will produce the highest net income?