Carla Vista, Inc. reports the following operating results for August: Sales $432,000 (units 5,400); variable costs $259,200; and fixed costs $97,200. Management is considering the following independent courses of action to increase net income. 1. Increase the selling price by 10%. 2. Reduce variable costs to 55% of sales. 3. Reduce fixed costs by $19,000. Compute the net income to be earned under each alternative. Net Income 1. Increase selling price $ 2. Reduce variable costs 3. Reduce fixed costs $ Which course of action will produce the highest net income? , will produce higest net income