Crane, Inc. reports the following operating results for August: Sales $549,000 (units 6,100); variable costs $329,400; and fixed costs $140,300. 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 $26,000. 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.