Blossom Farms reports the following results for the month of November:

Sales ( 11,000 units) $ 660,000

Variable costs 462,000

Contribution margin 198,000

Fixed costs 121,000

Net income $ 77,000

Management is considering the following independent courses of action to increase net income.

1. Increase selling price by 5% with no change in total variable costs.

2. Reduce variable costs to 66 /% of sales.

3. Reduce fixed costs by $ 10,000. Calculate net income for the above courses of action.

1. Increase selling price $ enter a dollar amount ________

2. Reduce variable cost $ enter a dollar amount _________

3. Reduce fixed cost $ enter a dollar amount _____________

If maximizing net income is the objective,

which is the best course of action?

Best course of action is select an option___________