Continue part b.

Crane Company reports the following operating results for the month of February: sales $834,000 (units 13,900 ); variable costs $417,000; and fixed costs $202,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 2.4% with no change in total variable costs or units sold. 2. Reduce variable costs to 46.80% of sales. (a) 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 0 decimal places, e.g. 125.) Which course of action will produce the highest net income? will produce the highest net income. tmpts: 1 o