reports the following operating results for the month of August: Sales $450,000 (units 5,000); variable costs $280,000: and fixed costs $115,000. Management is considering the following independent courses of action to increase net income. I. Increase selling price by 10% with no change in total variable costs 2. Reduce variable costs to 65% of sales. 3. Reduce fixed costs by $15,000. Compute the net income to be earned under each alternative. Net Income 1. Increase selling price$ 2. Reduce variable costs$ 3. Reduce fixed costs $ 100000 42500 70000 Which course of action will produce the highest net income? Increasing selling price by 10% '!'will produce higest net income