Sales ( 11,100 units) $ 666,000 Variable costs 466,200 Contribution margin 199.800 Fixed costs 122,100 Net income $ 77,700 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 662/:% 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 $ 2. Reduce variable cost $ 3. Reduce fixed cost $ If maximizing net income is the objective, which is the best course of action? Best course of action is