Sheridan Company reports the following operating results for the month of August: sales $310,000 (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 58% of sales. Net income 3. Reduce fixed costs by $20,000. Net income Which course of action will produce the highest net income