Carla Vista Company reports the following operating results for the month of August: sales $357,000 (5,100 units), variable costs $256,000, and fixed costs $99,000. Management is considering the following independent courses of action to increase net income. 1. Increase the unit selling price by 10% with no change in total variable costs, fixed costs, or units sold. 2. Reduce variable costs to 65% of sales while holding fixed costs, quantity, and unit selling price constant. 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