Sandhill, Inc. reports the following operating results for August: Sales $486,000 (units 5,400); variable costs $291,600; and fixed costs $124,200. Management is considering the following independent...

Extracted text: Sandhill, Inc. reports the following operating results for August: Sales $486,000 (units 5,400); variable costs $291,600; and fixed costs $124,200. 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 $19,000. Compute the net income to be earned under each alternative. Net Income 1. Increase selling price $ 2. Reduce variable costs 2$ 3. Reduce fixed costs 2$ Which course of action will produce the highest net income? Increasing selling price by 10% will produce higest net income.