Drop down options:

Increasing selling by 10%

Reducing fixed cost by $15,000

Reducing variable cost to 55%

Crane, Inc. reports the following operating results for August: Sales $450,000 (units 5,000 ); variable costs $270,000; and fixed costs $115,000. 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 $15,000. Compute the net income to be earned under each alternative. Which course of action will produce the highest net income? , will produce higest net income