Wildhorse, Inc. reports the following operating results for August: Sales $540,000 (units 6,000); variable costs $324,000; and fixed costs $138,000. 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 $25,000. Compute the net income to be earned under each alternative. Net Income 1. Increase selling price $ 23100 2. Reduce variable costs $ 7800 3. Reduce fixed costs $ 17200 Which course of action will produce the highest net income? , will produce higest net income