Cullumber Company reports the following operating results for the month of August: sales $382,500 (units 5,100), variable costs $247,000, and fixed costs $96,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 12% with no change in total variable costs or units sold. Reduce variable costs to 57% of sales. 2. 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? e Textbook and Media