Exercise 19 - 15 Cottonwood Company reports the following operating results for the month of August: sales $398,400 (units 4,980); variable costs $219,000; and fixed costs $97,370. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 14% with no change in total variable costs or units sold. 2. Reduce variable costs to 55% of sales. Compute the net income to be earned under each alternative