Ing operating results for the month of August: sales $400,000 (units 5,000), variable costs $256,000, and fixed costs $91,000. Management is considering the following independent courses of action to increase net income. 1. 2. Compute the net income to be earned under each alternative. 1. Increase selling price by 15% with no change in total variable costs or units sold. Reduce variable costs to 57% of sales. 2. Net Income $ Net Income $ Which course of action will produce the higher net income?

$256,000, and fixed costs $91,000. Management is consider the month of August: sales $400,000 (units 5,000 ), variable costs 1. Increase selling price by 15% with no change in total variable costs or units sold. 2. Reduce variable costs to 57% of sales. 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