Coronado Company reports the following operating results for the month of February sales $828.000 (units 13,800): variable costs $442,980; and fixed costs $182,300. 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. Reduce variable costs to 50.30% of sales. 2. (a) Compute the net income to be earned under each alternative. (Round per unit calculations to 2 decimal places, eg. 15.25 and final answers to decimal places, eg. 125.) Alternative #1 Alternative #2 Net Income $ S Which course of action will produce the highest net income? will produce the highest net income