E5-12B Ralston Company reports the following operating results for the month of August: Sales $350,000 (units 5,000); variable costs $250,000; and fixed costs $60,000. Management is considering the following independent courses of action to increase net ncomne. I. Increase selling price by 10% with no change in total variable costs. 2, Reduce variable costs to 70% of sales. Instructions Compute the net income to be earned under each alternative. Which course of action will produce the highest net income