Sheridan Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $225,000; and fixed costs $71,400. 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 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 $24,000. Net income Senter a net income if the fixed costs are reduced by $24,000 Which course of action will produce the highest net income? Alternative 2