35 Minutes Q2- ABC Company reports the following operating results for the month of January: Sales $200,000 (units 1,000); Variable costs $100,000; and Fixed costs $50,000. 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 sales volume. 2. Reduce variable costs to 58% of sales. 3. Reduce fixed costs by $20,000. Instructions: Compute the net income to be earned under each alternative. Which course of action will produce the highest net income