The Unruh Company reports the following results for the month of November: 

Sales (10,000 units) .... $600,000

Variable costs ...... 420,000

Contribution margin ..... 180,000

Fixed costs ........ 110,000

Net income ........ $70,000

Management is considering the following independent courses of action to increase net income. 

1. Increase selling price by 10% with no change in total variable costs. 

2. Reduce variable costs to 60% of sales. 

3. Reduce fixed costs by $30,000.

Instructions: 

If maximizing net income is the objective, which is the best course of action? Show all of your computations.