Sandhill Company reports the following operating results for the month of August: sales $300,000 (units 5,000 ); variable costs $223,000; and fixed costs $70,800, 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 56% of sales. Net income 3. Reduce fixed costs by $18,000. Netincome Which course of action wilf produce the highest net income: Blossom Company has a machine that affixes labels to bottles. The machine has a book value of $99,200 and a remaining useful life of 3 years and no salvage value. A new, more effcient machine is available at a cost of $372,000 that will have a 3 -year useful life with no salvage value. The new machine will lower annual variable production costs from $644,800 to $508,400. Prepare an analysis showing whether the old machine should be retained or replaced. (Enter negative amounts using either a negative slgn preceding the number es -45 or parentheses eg (45), J