Sunland, Inc. reports the following operating results for August: Sales $472,000 (units 5,900); variable costs $283,200; and fixed costs $106,200. Management is considering the following independent courses of action to increase net income. 1. Increase the selling price by 10%. 2. Reduce variable costs to 55% of sales. 3. Reduce fixed costs by $24,000. Compute the net income to be earned under each alternative. 1. Increase selling price 2. Reduce variable costs 3. Reduce fixed costs Net Income Which course of action will produce the highest net income? will produce higest net income