Sandhill Company reports the following operating results for the month of August: sales $303,800 (units 5,000); variable costs $212,660; and fixed costs $68,600. Management is considering the following independent courses of action to increase operating income: 1. Increase the selling price by 10% with no change in total variable costs. 2. Reduce variable costs to 65% of sales. 3. Reduce fixed costs by $9,800. Calculate the operating income that would be earned under each alternative. Which course of action will produce the highest operating income? will produce the highest operating income