Henderson farms reports the following results for the month of November:

Sales (10,500 units)		$651,000
Variable costs		451,500
Contribution margin		199,500
Fixed costs		115,500
Net income		$ 84,000

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.

Course			Net Income
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 increasing selling pricereducing variable costreducing fixed cost