A company reports the following operation results for sales for 1 month: sales $310,000 (units 5000); variable cost $210,000; and fixed cost $75,000. If they take 3 different courses of action which will produce the highest income?
1. Increase selling by 10% with no change in total variable cost or sales volume.
2. Reduce variable costs to 58% of sales.
3. Reduce fixed costs by $20,000.
Compute the net income of each alternative.