Oriole Company reports the following operating results for the month of August: sales $408,000 (5,100 units), variable costs $256,000, and fixed costs $93,000. 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 the unit selling price by 15% with no change in total variable costs, fixed costs, or units sold. Reduce variable costs to 66% of sales while holding fixed costs, quantity, and unit selling price constant. 2. Net income Net income $ $

Oriole Company reports the following operating results for the month of August: sales $408,000(5,100 units), variable costs $256,000, and fixed costs $93,000. Management is considering the following independent courses of action to lincrease net income 1. Increase the unit selling price by 15% with no change in total variable costs, fixed costs, or units sold. 2. Reduce variable costs to 66% of sales while holding fixed costs, quantity, and unit selling price constant: Compute the net income to be earned under each alternative. 1. Netincome 2. Net income 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? eTextbook and Media