Crane Company reports the following operating results for the month of August: sales $$392,000(4,900$ units$),$ variable costs $$254,000,$ and fixed costs $$91,000.$ Management is considering the following independent courses of action to increase net income.

Increase the unit selling price by $15\%$ with no change in total variable

Reduce variable costs to $68\%$ of sales while holding fixed costs, quant

Compute the net income to be earned under each alternative.

Net income $

Net income $

Which course of action will produce the higher net income?