5) The following information has been provided by Arawak Farms Limited for the month of August. Sales (10,000 Units) Variable Costs $ 600,000 $ 420,000 Contribution Margin Fixed Costs $ 180,000 $ 110,000 Net Income $ 70,000 Management is considering the following courses of action to increase Net Income: Increase selling price by 5% with no change in variable costs. 1) Reduce variable costs to 66% of sales. 2) Reduce Fixed Costs by $ 10,000. Required: a) Advise management on the best course of action to maximize the net income. 15 Marks