Your answer is partially correct. Carla Vista Company reports the following operating results for the month of August: sales $310,000 (units 5,000); variable costs $214,000; and fixed costs $71,000. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase unit selling price by 10% with no change in total variable costs or sales volume. Net income $ 56,000 2. Reduce variable costs to 57% of sales. Net income $ 62,300 3. Reduce fixed costs by $24,000. Net income $ GA 15,300 Which course of action will produce the highest net income? Alternative 2