Sheridan Company reports the following operating results for the month of August: sales $$285,200($units $5,000)$; variable costs $$199,640$; and fixed costs $$64,400.$ Management is considering the following independent courses of action to increase operating income:

Increase the selling price by $10\%$ with no change in total variable costs.

Reduce variable costs to $65\%$ of sales.

Reduce fixed costs by $$9,200.$

Calculate the operating income that would be earned under each alternative.

Operating income

Alternative $1$

Alternative $2$

Alternative $3$

Which course of action will produce the highest operating income?