Carla Vista Company reports the following operating results for the month of August: sales $357,000 (units 5,100) variable costs $256,000, and fixed costs $99,000. Management is considering the following independent courses of action to increase net income. Increase selling price by 10 % with no change in total variable costs or units sold. 1. 2. Reduce variable costs to 65% of sales. Compute the net income to be earned under each alternative $ 1. Net Income 2. Net Income Which course of action will produce the higher net income