Wildhorse, Inc. reports the following operating results for August: Sales $540,000 (units 6,000); variable costs $324,000;...

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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 $ 2. Reduce variable costs $ 3. Reduce fixed costs $ Which course of action will produce the highest net income? will produce higest net income. 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 $ 2. Reduce variable costs $ 3. Reduce fixed costs $ Which course of action will produce the highest net income? will produce higest net income.