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Pharoah Company reports the following operating results for the month of August sales $300,000 (units 5,000 ); variable costs $214,000; and foved costs $71,800. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase unit selling price by 10% with no change in total variable costs or sales volume. Net income $ 2. Reduce variable costs to 55% of sales. Net income: $ 3. Reduce fored costs by $23,000. Net income $ Which course of action will produce the highest net income