Ivanhoe Company reports the following operating results for the month of August: sales $375,000 (5,000 units), variable costs $257,000, and fixed costs $95,000. Management is considering the following independent courses of action to increase net income. 1. 2. Increase the unit selling price by 12% with no change in total variable costs, fixed costs, or units sold. Reduce variable costs to 61% of sales while holding fixed costs, quantity, and unit selling price constant. Compute the net income to be earned under each alternative. 1. Net income 2. Net income +A $ +A $ Which course of action will produce the higher net income?