Cottonwood Company reports the following operating results for the month of August: sales S400,000 (units 5,000): variable costs 5210,000; and fixed costs 590,000. 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. Reduce variable costs to 45% of sales. Compute the net income to be earned under each alternative. (Round intermediate calculations to 2 decimal places, e.g. 2.25 and final answers to o decimal places, e.g. 12,125.)