Bonita Company reports the following operating results for the month of February: sales $828,000 (units 13,800); variable costs $442,980; and fixed costs $190,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 2.7% with no change in total variable costs or units sold. 2. Reduce variable costs to 49.90% of sales. Compute the net income to be earned under each alternative. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 125.) Net Income Alternative #1 Alternative #2 Which course of action will produce the highest net income? will produce the highest net income