Sheridan Farms reports the following results for the month of November: Sales (10,000 units) $630,000 Variable costs 440,000 Contribution margin 190,000 Fixed costs 110,000 Net income $ 80,000 Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 5% with no change in total variable costs. 2. Reduce variable costs to 66/-% of sales. 3. Reduce fixed costs by $10,000. Calculate net income for the above courses of action. Course Net Income 1. Increase selling price $ 2. Reduce variable cost $ 3. Reduce fixed cost $ If maximizing net income is the objective, which is the best course of action? Best course of action is Save for Later Attempts: 0 of 1 used Submit