Ivanhoe Company reports the following operating results for the month of August: sales $392,000 (units 4,900), 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 10% 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