Wildhorse Company reports the following operating results for the month of August: sales $403,000 (units 5,000); variable costs $282,100; and xed costs $91,000. Management is considering the following independent courses of action to increase operating income: 1. Increase the selling price by 10% with no change in total variable costs. 2. Reduce variable costs to 65% of sales. 3. Reduce xed costs by $13,000. Calculate the operating income that would be earned under each alternative. Operating income Alternative 1 35 Alternative 2 $ Alternative 3 $ Which course of action will produce the highest operating income? v will produce the highest operating income