Carla Vista Company reports the following operating results for the month of August: sales $357.000 (units 5,100), variable costs $256,000, and fored costs $99,000. 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 or units sold. 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? Alternative 10